The NZDUSD opens at 0.6526 (mid-rate) this morning.
Renewed optimism surrounding US China trade deal, following a Bloomberg News report has boosted investor risk-appetite.
According to the report both parties are close to agreeing on the amount of tariffs that would be rolled back in a phase
one trade deal. negotiators are hopeful of implementing this before December 15th when the US are set to raise tariffs
again.
US equity markets have pushed higher on the trade news which is offsetting this morning’s disappointing US economic
data.
This morning’s ADP private sector employment report for November came in much weaker than expected, with a employment
increasing by 67k jobs well short of the forecast 140k jobs increase. Octobers previously reported 125k jobs increase
was downwardly revised to 121k.
The ISM service sector activity report was also underwhelming with the non-manufacturing index falling at a faster pace
than expected. The index fell to 53.9 in November following a 54.7 reading and below the expected 54.5 dip.
This afternoon’s bank capital review will be the key driver for the NZ during our trading day with RBNZ Gov Orr due to
speak at 1 pm.
Global equity markets are mixed, - Dow +0.72%, S 500 +0.69%, FTSE +0.42%, DAX +1.16%, CAC +1.27%, Nikkei -1.05%, Shanghai -0.23%
Gold prices are little changed trading at $1,474 an ounce. WTI Crude Oil prices have surged higher, up 4.2% trading at
$58.41 a barrel.
ends