Donald Trump Talks About The Growing Tariff War After China Fight Back - APAC Update

Xe Corporate APAC

May 14, 2019 3 min read

The AUDUSD opened little changed at 0.6943,  and The NZDUSD opened at 0.6574 this morning.

The AUD and NZD stabilised as the USD and global equity markets reacted favourably on reports the US and China have agreed to keep negotiations going to end their trade despite.

The AUDUSD sits near 3-year lows, excluding the levels seen during the early January flash crash. The odds of an RBA interest rate cut continue to increase while threats to global growth remain.

The AU Quarterly Wage Price Index (Q1) will hit the wires at 11:30am AEST.

US News

US President Trump said on Tuesday that trade talks with China have not collapsed and called the growing tariff war “a little squabble,” despite the recently announced tariff increases. While China’s top diplomat said China and the US has the “ability and wisdom” to reach a trade deal. All positive sentiments, but a workable deal remains someway off.

Europe News

The EUR slid after Italy’s deputy prime minister said the country is ready to break European budget rules on debt levels if necessary to stimulate employment.

The GBP fell as UK employment data showed wage growth for the March quarter was lower than forecast, which reduces any probability of a Bank of England interest rate hike.

Global equity markets were mostly higher on the day, partially recovering the previous day’s losses - Dow +0.8%, S&P 500 +0.8%, FTSE +1.1%, DAX +1.0%, CAC +1.5%, Nikkei -0.6%, Shanghai -0.7%.

Gold prices dropped 0.2% to USD$1,297 an ounce on safe-haven demand. WTI Crude Oil prices jumped 1.1% to US$61.68per barrel after Saudi Arabia said explosive-laden drones launched a Yemeni armed movement aligned with Iran had attacked facilities belonging to the state oil company.

Mid-market Rates

AUDUSD0.69430.0%NZDUSD0.65740.0%AUDEUR0.61940.1%NZDEUR0.58660.3%AUDGBP0.53800.4%NZDGBP0.50930.5%AUDJPY76.130.3%NZDJPY72.060.3%AUDNZD1.0563-0.1%NZDAUD0.94680.1%GBPAUD1.8587-0.4%NZDCAD0.88530.0% GBPNZD1.9635-0.5%
Our *MarketWatch* 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.*

**Australia Morning Update  |  New Zealand Morning Update**

Please Note:
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