The NZD opens at 0.6302
The Kiwi has drifted off, despite local GDP data coming in slightly better than expected at 0.5% q/q. As is often the
case these days, global sentiment dominated, with comments from Trump's advisor, that Trump is ready to escalate the
trade war if there is no deal. These days the market is getting a little desensitised to this, but with good
manufacturing data also out of the US, it was enough for the USD to catch a bid.
The AUD on the other hand has had a harder time of it as the Australian unemployment rate ticked up to 5.3%. The
currency has come down a fairly long way over the past few years, even as the unemployment rate has dropped. You would
hate to see what would happen to it in an employment crisis…
Out of the UK, we have some positive news. The EU’s Junker has come out saying “We can have a deal”, and the market has
run with it, bringing the GBP to amongst the strongest performers. The GBP/NZD rate is closing in on 2.0000:1 for the
first time since May, and then it only peeped above intraday, before selling back down to 1.8300. This has now become a
strong resistance level, and some holders of Sterling will be looking to takes their gains now, rather than taking the
risk into October 31st.
Global equity markets remain mixed, - Dow -0.19%, S 500 +0.10%, FTSE +0.58%, DAX +0.55%, CAC +0.68%, Nikkei +0.38%, Shanghai +0.46%.
Gold prices are little changed trading at $1,1506 an ounce. WTI Crude Oil prices are up 1.1% currently trading at $58.32 a barrel.