Record Low Market Volatility Continues into Saturday's Monthly Close

Xe Corporate APAC

December 1, 2019 2 min read

The AUDUSD opens at 0.6765 (mid-rate) and the NZDUSD opens at 0.6428 (mid-rate) this morning.

Record low currency market volatility continued into Saturday’s monthly close with many US investors opting for an extra-long Thanksgiving holiday break.

Global equity markets all weakened into the month end, after President Trump signed two bills in support of pro-democracy protesters in Hong Kong. China’s Foreign Ministry reiterated that they will implement strong countermeasures should the US attempt to interfere in China's internal affairs.

On the economic data front factory activity in China unexpectedly returned to growth in November for the first time since April. According to China’s National Bureau of Statistics the Purchasing Managers’ Index (PMI) rose to 50.2 in November following on from October’s 49.3 reading. The index had been forecast to inch up to 49.5.

Direction for the AUD will be dictated by tomorrow afternoon's monetary policy announcement. The RBA are widely expected to keep rates on hold and it will be the accompanying statement that will dictate direction.

In NZ this week, investor interest will be focused on the RBNZ’s bank capital review, when a final decision on the amount of capital banks must hold, and improvements to the quality of regulatory capital will be delivered. The implementation of any new capital rules is expected to start in April with a transition period of 5-years

Global equity markets closed lower on Friday - Dow -0.40%, S&P 500 -0.40%, FTSE -0.94%, DAX -0.07%, CAC -0.13%, Nikkei -0.49%, Shanghai -0.61%.

Gold prices pushed higher on Friday closing out the month at $1,472 an ounce. WTI Crude Oil prices fell sharply on Friday, down 5.1% closing out the month at $55.17 a barrel.