The AUDUSD opens at 0.6738 (mid-rate) and the NZDUSD opens at 0.6383 (mid-rate) this morning.
The escalating US-China trade war has once again dominated markets and overshadowed Federal Reserve Chairman Jerome Powell’s highly anticipated speech at the Jackson Hole Economic Policy Symposium.
In reaction to China announcing plans to impose news tariffs on $75b worth of US imports, President Trump announced the 25% tariff on $250b worth of Chinese imports will be raised to 30% beginning 1st October, as well as increasing from 10% to 15% the tariff on the remaining $300b worth of Chinese imports that Trump announced earlier this month.
Trump is also demanding that US businesses cease trading with China tweeting "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA."
The news led to yet another sell-off on Wall Street with all other exchanges set to open sharply lower throughout the day.
Fed Chairman Jerome Powell during his speech at the Jackson Hole Economic Policy Symposium said the bank will "act as appropriate" to sustain the US economic expansion citing geopolitical events, including the growing possibility of a hard Brexit, rising tensions in Hong Kong, and the dissolution of the Italian government along with mounting trade tensions as focal points for the Fed.
As a result of the subsequent uncertainty, Powell said the Fed is "carefully watching developments as we assess their implications for the US outlook and the path of monetary policy."
Once again Trump was quick to voice his displeasure with Powell tweeting "As usual, the Fed did NOTHING! It is incredible that they can 'speak' without knowing or asking what I am doing, which will be announced shortly."
US equity markets were sharply lower on Friday - Dow -2.37%, S&P 500 -2.59%, FTSE -0.47%, DAX -1.15%, CAC -1.14%, Nikkei +0.40%, Shanghai +0.49%.
Gold prices edged up 1.1% on Friday closing out the week at $1,526 an ounce. WTI Crude Oil prices were down 2.3% on Friday, closing out the week at $54.02 a barrel.
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- NZ: Trade Balance - 08:45 AEST / 10:45 NZST
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