The AUD opened at 0.6910, and the NZD opened at 0.6507.
The AUD and NZD threatened to get interesting overnight, before deciding against it and reverting back to where it started. We are in a bit of a holding pattern, with the market looking for direction either way. This is not uncommon, but what is worth remembering is that when rates finally break out, they can have a decent move.
We have Chinese Manufacturing PMI at 1:00 pm NZT. This is definitely something Australia watch’s closely. Given the current back drop of political risk around the trade war though, what tends to happen is these data points lose a little significance. We would argue this is the case here - on a slightly positive or close to forecast number of 49.9, you might only get a small bounce in the AUD. However, if there is an especially poor number, this could make things very interesting. The market would then be very quick to extrapolate this out, thinking the trade war is indeed hurting China, and therefore they would be more willing to come to the negotiating table. This would ironically be risk positive, and also good for the AUD. Not every day you get that kind of outcome going into a data release. However, always take these thoughts with a grain of salt, as currency markets have a habit of surprising, but it will be interesting to see play out.
It is a long weekend for New Zealand, with locals enjoying the sunny Queen’s Birthday weather, so no NZD settlements on Monday, though we will still be able to settle payments out of Australia.
Global equity markets were mostly lower on the day - Dow -0.07%, S&P 500 +0.07%, FTSE +0.46%, DAX +0.54%, CAC +0.51, Nikkei -0.29%, Shanghai -0.31%.
Gold prices are up 0.9% to USD$1,279 an ounce. WTI Crude Oil prices slumped 3.9% to US$56.47 per barrel.
Our MarketWatch page is live, please click here to access.
Get in touch with us for more information or pricing.
Would you like daily international currency market news and insights delivered to directly to your inbox? Sign up to our country-specific updates below, and please browse the rest of our blog for more insights from XE offices around the globe.
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.
While we take reasonable care to keep the information on the website accurate and up to date, there may be occasions when this is not possible. Case Studies and articles are not intended to predict future moves in exchange rates or constitute advice.
XE makes no representations, warranties, or assurances as to the accuracy or completeness of any information derived from third party sources. If you are in any doubt as to the suitability of any foreign exchange product that you are intending to purchase from XE, we recommend that you seek independent financial advice first.
For more information about XE, please click here: Regulatory Information