The AUDUSD opened at 0.6792 (mid-rate), and the NZDUSD opened at 0.6453 (mid-rate) this morning.
News that the US are to delay its latest round of tariffs on some Chinese imported goods has seen US equity markets and bond yields spike higher.
Earlier this morning a US Trade Representative announced that Trump’s plan to impose a 10% tariff of certain Chinese imports will be delayed, with some products being removed from the tariff list entirely. Laptops, cell phones and gaming consoles, are among some of the products imported from China that will have the newly announced 10% September 1st tariff delayed until mid-December, while other products “based on health, safety, national security and other factors” will now be exempt from the new tariffs.
On the back of the announcement the Australian dollar is the strongest performing of the G10 currencies with the Japanese yen the weakest as risk appetite increases.
Yield on the US 10-year note which was trading near three-year-lows of 1.62% prior to the announcement spiked higher and is currently trading 1.68%.
Consumer prices in the Us during the month of July printed in line with economists’ forecasts with the Labour Department reporting its index climbed by 0.3% following 0.1% increases in both May and June.
There was good news out of the UK overnight with the Office for National Statistics reporting UK wages grew at the fastest pace in over 10 years. The report showed the average weekly pay grew 3.7% in the year to June with average pay excluding bonuses climbing 3.9%.
Australia’s wage price index along with China’s industrial production data releases are the key drivers during our trading day.
Global equity markets are mixed, - Dow +1.55%, S&P 500 +1.60%, FTSE +0.33%, DAX +0.60%, CAC +0.99%, Nikkei -1.11%, Shanghai -0.63%.
Gold prices have fallen sharply, down 3.4% trading at $1,500 an ounce. WTI Crude Oil prices are aggressively higher, up 4.1% trading at $57.11 a barrel.
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