The AUDUSD opens at 0.6706 (mid-rate) and the NZDUSD opens at 0.6269 (mid-rate) this morning.
Growing fears of an imminent recession following Tuesday’s US manufacturing activity contraction, were added to overnight after payroll processor ADP reported private sector jobs increased less than expected in September and downwardly revised August’s jobs increase from 195k jobs to 157k jobs. September private sector employment increased by 135k jobs, 5k short of the expected 140k additional jobs.
US Treasury yields have fallen further overnight with the 10-year Treasury yield down a further 5bps to 1.59% from this time yesterday.
There has been little reaction to the unveiling of Boris Johnson’s Irish Border proposal which will create two Northern Irish borders at the end of the Brexit transition period, with the arrangements rolled out in January 2021. One of them will be a regulatory border between Northern Ireland and the rest of the UK, with Northern Ireland remaining aligned with the EU on all single market rules for agriculture and industrial goods.
The second border would be between Northern Ireland and the Republic of Ireland and it would be purely relating to customs, although freedom of movement of the people will be respected. The regulatory border would come with a proposed four year time-limit. In 2025 the Northern Irish Assembly will vote on whether to stay aligned with EU regulations or realign with the rest of the UK.
Global equity markets are a sea of red - Dow -2.05%, S&P 500 -2.02%, FTSE -3.23%, DAX -2.76%, CAC -3.12%, Nikkei -0.92%, Shanghai Closed
Gold prices have retraced yesterday’s fall up 1.4% to $1,503 an ounce. WTI Crude Oil prices have fallen further, down 1.5% trading at $52.55 a barrel.
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