The NZDUSD opens lower at 0.6542 this morning.
Trade tensions between the US and China kept growth currencies, such as the NZD and AUD, under pressure. US President Donald Trump said he was “not yet ready” to make a deal with China and hinted the two economic giants are far from a trade agreement.
The EUR struggled to hold earlier gains as investor relief at the limited success for Eurosceptic parties in European parliamentary elections was offset by a decline in the share of seats held by the biggest blocs. The election results have dented the hopes of anti-immigration, anti-Brussels parties.
The yields on NZ 2-year Government bonds fell to a record low of 1.325% on Monday, as the markets continue to wager on another 0.25% rate cut by the RBNZ in the coming months. This is helping to keep a lid on the NZD.
The GBP fell, as sentiment remain negative, ahead of Theresa May’s departure from the Prime Minister’s office amid continuing Brexit uncertainty.
There is no data released scheduled on the domestic calendar today.
Tomorrow will be more interesting with the RBNZ Financial Stability Report, two speeches from RBNZ Governor Adrian Orr, along with ANZ Business Confidence figures.
Global equity markets were higher on the day - Dow +0.4%, S&P 500 +0.1%, FTSE +0.7%, DAX +0.5%, CAC +0.4, Nikkei +0.3%, Shanghai +1.4%.
Gold prices gained 0.1%% to USD$1,285 an ounce. WTI Crude Oil prices jumped 2.1% to US$59.17 per barrel.
Current indicative rates:
Upcoming Data Releases (NZT):
- No local data releases
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