July 23, 2019 — 2 min read
The AUDUSD opens at 0.7005 (mid-rate) and the NZDUSD opens at 0.6705 (mid-rate) this morning.
News that President Trump and congressional leaders agreed a two-year US debt ceiling and budget deal yesterday morning has seen the USD outperform overnight.
The deal which will raise US discretionary spending to $1.37 trillion in fiscal year 2020, up from $1.32 trillion this year will reduce the threat of debt default and automatic, across-the-board spending cuts, as well as alleviating the threat of a government shutdown when funding expires after 30 September.
The NZ dollar is the weakest performing of the G10 currencies after a Bloomberg report said the RBNZ was contemplating how it would implement "unconventional" monetary policy measures such as quantitative easing. The report comes ahead of next month’s monetary policy statement when the RBNZ are tipped to follow other Central banks and reduce the OCR by a further 25bps to 1.25%.
The news that Boris Johnson has been confirmed as the new Conservative Party leader and UK Prime Minister has seen the British pound push higher. Michel Barnier the European Union's Chief Negotiator immediately announced that he is looking forward to “working constructively with PM Boris Johnson when he takes office, to facilitate the ratification of the Withdrawal Agreement and achieve an orderly Brexit.”
Global equity markets are benefiting from reports that US officials are about to head back to Beijing to resume face-to-face trade talk negotiations.
Global equity markets have turned positive - Dow +0.55%, S&P 500 +0.53%, FTSE +0.56%, DAX +1.64%, CAC +0.92%, Nikkei +0.95%, Shanghai +0.46%.
Gold prices are marginally lower trading at $1,419 an ounce. WTI Crude Oil prices have inched higher, up 0.7%, trading at $56.75 a barrel.
NZ: Trade Balance - 08:45 AEST / 10:45 NZST
AU: Flash Manufacturing PMI - 09:00 AEST / 11:00 NZST
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.*