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 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.
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.
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