The AUDUSD opens at 0.7112, and the NZDUSD opens at 0.6811 (mid-rate) this morning.
We expect this morning’s quarterly business confidence data release to show yet another fall as businesses digest the impact of a possible Capital Gains Tax. Direction for the NZDAUD cross rate will be dictated by this afternoon’s RBA monetary policy statement and whether or not the RBA follows the RBNZ”s lead and shifts from a neutral to and easing bias.
Global equity markets have reacted positively to China’s upbeat manufacturing data after yesterday’s private manufacturing PMI survey (the official government PMI was released on Sunday) exceeded expectations and expanded for the first time in four months. The Caixin/Markit index rose to 50.8 in March following on from February’s 49.9 reading and represents the strongest rate of expansion in eight months. Economists had forecast the rate to remain unchanged at 49.9.
With a delegation led by Chinese Vice Premier Liu heading to Washington later this week to continue trade talks markets were also buoyed by the news that China will continue to suspend additional tariffs on U.S. vehicles and auto parts after April 1 as a gesture of goodwill. There were more positives than negatives in this morning’s US data releases with better-than-expected manufacturing and construction data releases outweighing an unexpected pull back in February’s retail sales.
The Institute for Supply Management (ISM) reported its purchasing managers index rose to 55.3 in March, economists had forecast the index to remain unchanged from February’s 54.2 reading.
Construction spending during the month of February spiked by 1.0% surprising economists who had expected spending to dip by 0.2% following January’s 1.3% jump.US retail sales unexpectedly dipped by 0.2% in February following on from an upwardly revised 0.7% increase in January the fall would far greater if it weren’t for rebound in sales by motor vehicle and parts dealers which rose by 0.7%.
The GBP has rebounded off yesterday’s lows and is the strongest performing of the G10 currencies. The British Parliament will this morning vote on a variety of Brexit alternatives in an attempt to find one that they can agree on. Theresa May has still not given up on a possible fourth vote on her deal after narrowing her margin of defeat to 58 votes from 230 votes in January.
Global equity markets have started the week on the front foot, - Dow +1.0, S&P 500 +0.90, FTSE +0.52%, DAX +1.35%, CAC +1.03%, Nikkei +1.43%, Shanghai +2.58%. Gold prices are edging lower, down 0.2% trading at $1,288 an ounce. WTI Crude Oil prices have surged higher overnight, currently up 2.5% trading at $61.70 a barrel.
Our Market Watch page is live, please click here to access.
Get in touch with us for more information or pricing.
Would you like daily international currency market news and insights delivered to directly to your inbox? Sign up to our country-specific updates below, and please browse the rest of our blog for more insights from XE offices around the globe.
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.
While we take reasonable care to keep the information on the website accurate and up to date, there may be occasions when this is not possible. Case Studies and articles are not intended to predict future moves in exchange rates or constitute advice.
XE makes no representations, warranties, or assurances as to the accuracy or completeness of any information derived from third party sources. If you are in any doubt as to the suitability of any foreign exchange product that you are intending to purchase from XE, we recommend that you seek independent financial advice first.
For more information about XE, please click here: Regulatory Information