The AUDUSD opens at 0.7006 and the NZDUSD opens at 0.6698 - both open higher this morning.
As we head into the weekend, financial markets are keenly awaiting the G20 meeting being held in Japan. The big question is will the USA and China be able to reach some sort of deal on trade? Pre-meeting indications are that a truce will be declared which might pave the way for a deal to be agreed over coming months. The ongoing trade war has weighed on global growth and if it continues threatens to tip the global economy into recession.
US President Donald Trump and Chinese Premier Xi are scheduled to meet on Saturday afternoon NZ time so we should know the outcome when trading resumes on Monday morning.
In the markets the Kiwi Dollar is again firmer, shrugging off yesterday’s weak business confidence readings. The Aussie Dollar has also had a boost on hopes of a US-China trade deal and is now nearly 2 cents higher than its recent lows.
Both the AUD and NZD have been in strong demand this week as money continues to flow out of Asia as Asian countries try and keep their own currencies weak.
Looking at the data calendar today we have Aussie lending data and tonight we get an update on the USA's latest inflation data which will influence whether the US Federal Reserve cut interest rates at their next meeting at the end of July.
Global equity markets were mixed on the day - Dow -0.1%, S&P 500 +0.4%, FTSE -0.2%, DAX +0.2%, CAC -0.1%, Nikkei +1.2%, Shanghai +0.7%.
Gold prices dropped 0.1% to US$1,409. WTI Crude Oil prices rose 0.2% to US$59.236 per barrel.
Upcoming Data Releases
- AUD: Private Sector Credit - 11:30am AEST / 13:30 NZST
- USD: Inflation Data - 22:30 AEST / 00:30 NZST
- G-20 Meeting begin this afternoon (local time)
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