AUD and NZD Higher as Pressure Eases on US-China Trade Dispute

. 2 min read

The AUDUSD opens at 0.7025 and the NZDUSD opens at 0.6720 this morning.

The AUD and NZD have gapped higher on the open this morning after President Donald Trump said negotiations are "back on track" following his meeting with Chinese President Xi Jinping at the G20 summit in Japan on Saturday.

Trump described his meeting with Xi as "excellent, as good as it was going to be" and "we're right back on track," and announced that he will not follow through on threats to raise tariffs, at least for the time being. Previously, Trump had threatened that he could add tariffs to a further $350 billion worth of Chinese imports.

Friday’s University of Michigan consumer sentiment index reading for the month of June was upwardly revised to 98.2 from 97.9 marginally ahead of the expected 98.0 outcome.

Direction for the AUD this week, will be dictated by tomorrow’s RBA monetary policy statement with the RBA widely expected to keep rates on hold, although the market is currently pricing in a 75% chance of another 25 basis point cut in the OCR before the end of August.

The highlight for the NZD over the course of the week will be tomorrow’s NZIER Business Confidence data release with investors also looking to the RBA’s monthly monetary policy statement for NZDAUD direction.

Global equity markets closed out the quarter mixed - Dow +0.28%, S&P 500 +0.57%, FTSE +0.31%, DAX +1.04%, CAC +0.83%, Nikkei -0.29, Shanghai -0.60%.

Gold prices were unchanged on Friday closing out the quarter at $1,409 an ounce. WTI Crude Oil prices fell sharply on Friday, down 1.6%%  closing out the quarter at $58.52 a barrel.

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