The Opening Bell: Where currencies start on Tuesday, May 7, 2019

The Opening Bell: Where currencies start on Tuesday, May 7, 2019

By the XE Corporate team

The NZDUSD opens at 0.6605 (mid-rate) this morning.

An escalation in trade tensions, brought about by Trump’s tariff threat has put a dent into risk appetite with equity markets and risk-linked currencies underperforming.

Trump’s tweets raised concerns about whether this week’s scheduled trade talks would go ahead with the Wall Street Journal reporting that China was considering pulling out of the talks, however markets have retraced almost 50% of their fall after a spokesman for China's Ministry of Foreign Affairs said the Chinese delegation is "preparing to go to the U.S. for the negotiations."

This afternoon’s inflation expectations are likely to play second fiddle to the Reserve Bank of Australia’s monetary policy statement, due for release late this afternoon. The market is evenly split between the RBA remaining on hold and cutting the OCR by 25bps with many investors of the opinion the RBNZ will follow the RBA’s lead when deciding whether or not they cut the OCR at this point in time.

Global equity markets are on the back foot, - Dow -0.68%, S&P 500 -0.76%, FTSE Closed, DAX -1.01%, CAC -1.18%, Nikkei Closed, Shanghai -5.58%.

Gold prices are little changed, trading at $1,281 an ounce. WTI Crude Oil prices are pushing higher, up 0.8% Trading at $62.53 a barrel.

Current indicative rates:

NZDUSD 0.6605 0.0%
NZDEUR  0.5896 -0.3%
NZDGBP 0.5041 0.3%
NZDJPY 73.22 0.2%
NZDAUD 0.9442 -0.4%
NZDCAD 0.8885 -0.2%
GBPNZD 1.9837 -0.3%

Upcoming Data releases (NZST):

  • 15:00 - Inflation Expectations q/q
  • 16:30 - RBA Rate Statement

 

 

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Marcus Phillips is the Affiliate manager at xe money transfer in Auckland. You can contact him here »

Daily exchange rates

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USD 
NZD
End of day UTC
Source: CoinDesk

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