The NZDUSD opens at 0.6344 (mid-rate) this morning.
The NZD has bounced off yesterday’s lows with risk appetite increasing amid continued optimism about US China trade
talks along with overnight news that the European Union has granted and Boris Johnson accepted a Brexit deadline
extension.
Overnight Boris Johnson formally accepted the EU's offer of a Brexit extension until 31 January 2020 ruling out his we
will leave with or without a deal on the 31st Oct promise. Speaking in the Commons, Mr Johnson has again pushed for an
early December election with the labour party leader Jeremy Corbyn continuing to insist that his party will only add its
support for an early election if the prospect of a no-deal exit is taken off the table.
A statement from US Trade Representative Robert Lighthizer that they are “making headway on specific issues and the two
sides are close to finalizing some sections of the agreement," has helped push equity markets higher with the S now trading at record highs.
Despite the market pricing in a better than 90% chance that the Federal Reserve will cut its funds rate by 25 bps in the
early hours of Friday morning, the US 10 year Treasury yield is trading at a six-week high of 1.85% as investors reduce
their expectations for multiple cuts in 2020.
Global equity markets are on the front foot, - Dow +0.43%, S 500 +0.57%, FTSE +0.09%, DAX +0.37%, CAC +0.15%, Nikkei +0.30%, Shanghai +0.85%
Gold prices are little changed trading at $1,492 an ounce. WTI Crude Oil prices are slipping lower, down 1.5%% trading at $55.93 a barrel.