The NZDUSD opens at 0.6941 (mid-rate) this morning.
Geopolitical risked eased yesterday with markets responding positively to the news that the US and China have agreed to
drop tariff threats and work together on a wider agreement.
Global equity markets along with risk linked currencies have moved to the upside with the AUD the strongest performing
of the G10 currencies.
The NZD failed to keep track with the AUD with yesterday’s disappointing retail sales report weighing on the dollar. Q1
retail sales increased just 0.1% well below the expected 1.0% growth, with Q4’s previously reported 1.7% increase
downwardly revised to 1.4%.
The British Pound is under pressure as investors trim their long GBP positions ahead of Wednesday night’s inflation
report. Traders remain wary after last month’s report showed UK inflation fell at a much faster rate than expected, from
2.7% to 2.5%, prompting the BOE to cut its inflation forecasts.
Global equity are broadly higher- Dow +1.17%, S 500 +0.77%, FTSE +1.03%, DAX Closed%, CAC +0.41%, Nikkei +0.31%, Shanghai +0.64%.
Gold prices are unchanged trading at $1,292 an ounce. WTI Crude Oil prices have pushed higher, up 1.3% trading at $71.37
a barrel.
ends