The AUDUSD opens at 0.6765 (mid-rate) and the NZDUSD opens at 0.6407 (mid-rate) this morning.
Currency markets have consolidated as investors look towards the end of the week, Jackson Hole central bankers meeting for guidance.
Federal Reserve Chairman Jerome Powell who is scheduled to speak at the event in the early hours of Saturday morning (our time) is expected to all but confirm a September rate cut, with the only question being how aggressive a rate cut the Fed are likely to deliver.
President Trump has again put pressure on the Fed to cut rates aggressively, Trump said the US economy is “very strong” despite the “ horrendous lack of vision” by Powell and the Fed, and went on to tweet, “ The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well.”
Global equity markets have had a strong start to the week benefiting from optimism about new global stimulus and the news that Trump's administration is once again delaying restrictions on Chinese tech giant Huawei. Huawei’s temporary general license which was due to expire on Monday 26th Aug has now been extended for a further 90 days.
The key driver for the Aussie Dollar during our trading day will be this morning’s monetary policy minutes from the Aug 6th meeting.
For the Kiwi Dollar, overnight the latest global dairy trade auction is expected to show another dip dairy prices following a 2.5% fall in the index a fortnight ago.
Global equity markets have a solid start to the week - Dow +1.03%, S&P 500 +1.30%, FTSE +1.02%, DAX +1.32%, CAC +1.34%, Nikkei +0.71%, Shanghai +2.10%.
Gold prices are marginally down 1.1% trading at $1,497 an ounce. WTI Crude Oil prices have pushed higher, up 2.1% trading at $55.96 a barrel.
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