The AUD opened at 0.6933, and the NZD opened at 0.6556.
The Aussie and Kiwi dollars extend their good run of late, taking us to a 10-day high. Wednesday is shaping up as a big day for the NZD, with the stability report followed by RBNZ Gov Orr speaking, rounded off with a side of Business Confidence. For the AUD, Thursday will be a big day, with Building approvals, Private Capital Expenditure and the Annual Budget release.
Out of the States, Core Durable Goods missed expectations by 0.1%. While this does not sound too large on the face of it, a lot of economists used it as a catalyst to adjust their GDP forecasts. JP Morgan was possibly the most extreme, now seeing Q2 GDP at 1% in the states, down from 2.5%. Probably more of a lesson in taking forecasts with a grain of salt, but still this has flowed into USD weakness. Given it is a US Public holiday today though, consolidation across the board will not be a surprise.
One thing that may change this however is news of Teresa May announcing she will resign on June the 7th. She will then become interim Prime minister until a new leader is elected. While not entirely unexpected, it does add another complication to Brexit.
Boris Johnson is shaping up as the favourite to replace her, and he has already stated that “The way to get a good deal is prepare for a no-deal scenario”. Beyond rhetoric, one really wonders what else Boris can do differently if the EU refuse to renegotiate May’s deal. In this, a new election is probably the most likely outcome, and Boris’s promise that “We will leave the EU on Oct 31, deal or no deal”, already sounds like the usual hot air.
Global equity markets are down across the board, - Dow 0.37%, S&P 500 +0.14%, FTSE +0.65%, DAX +0.49%, CAC +0.67%, Nikkei -0.16%, Shanghai 0.02%.
Gold prices are flat at $1,284 an ounce. WTI Crude Oil prices are also net relatively unchanged at trading at $57.94 a 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