The AUDUSD opens up at 0.6801 and the NZDUSD opens up at 0.6297.
Looking at the AUD and NZD you would think everything was rosy with the world, but it is more the start of the 1:1 risk-on/risk-off correlation starting to decouple. Usually protests and trade tensions would make capital flow to safe havens, but for once the market is starting to delve a little deeper, and realise that this is going to have negative consequences for the US specifically. The protests over the killing of George Floyd can be seen in a wider context of large scale unemployment, income inequality, and the poorest getting hit the hardest. What this means for the economy, and the eventual recovery remains to be seen, but we don't see things returning to business as usual.
Either way, in a world where it is becoming increasingly difficult to decide where to invest your money, Australia and New Zealand are looking pretty good bets. As has been alluded to before, the world is starting to come out of lockdown, but the question is, are countries like the US and Europe ready? If you look at an AUD/EUR chart, you have the markets answer.
Closer to home, we have the RBA Cash Rate and Statement at 3:30pm AEST. The rate statement will be the thing to watch here, as the Cash Rate is not expected to move for quite some time.
Global equity markets are mixed- Dow +0.4%, S&P 500 +0.4%, FTSE +1.5%, DAX -1.7%, CAC +1.4%, Nikkei +0.8%, Shanghai +2.2%
Gold prices are up slightly to USD$1,739 an ounce, while WTI Crude Oil prices are also higher, up 0.8 to US$35.6 per barrel.
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