The AUDUSD opens at 0.6758 and the NZDUSD opens at 0.6366 this morning.
The Kiwi Dollar has had a bad day, drifting down to its lowest level since 2016 against the USD. Things weren't much better for the Aussie Dollar which also opens lower against the USD. We have the Fed meeting over the weekend at Jackson Hole, a symposium where economists, academics and the like discuss all things finance, including monetary policy. The Fed’s chair Powell will give a speech, and this is going to be very closely picked over to get clues on the next rate cuts. This can be market moving, so the rate on the open at Monday could well be quite different to where we close.
The Pound had a very good night, with Germany's Angela Merkel commenting “What one can achieve in three or two years can also be achieved in 30 days”. The market ran with this, thinking that if there was a solution to the Irish backstop in particular, and both sides are willing and able to implement it quickly, then a deal could still be on by 31 October. Merkel has since walked it back a little saying she was talking generally and only being polite, but for now the Pound is holding onto its gains.
New Zealand has Retail Sales for the quarter out at 10:45 local time this morning. Generally this is fairly variable, nonetheless the market does still react, so definitely something to keep an eye on.
Upcoming Data Releases
- NZ Retail Sales - 08:45 AEST / 10:45 NZST
- US: Fed - Powell Speaks - 0:00 AEST / 02:00 NZST
- Jackson Hole Symposium - Over the weekend
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