The AUDUSD opens at 0.5986 and the NZDUSD at 0.5938 this morning.
It’s a tough day out there, and for the moment rallies are short-lived.
The New Zealand Government released a package detailing 12 billion worth of spending, or 4% of GDP. This led to some gains, but not enough to hold, or not enough to avoid hitting a new low against the US dollar. At least that low was predicated on US strength.
The US are said to be talking about discussing a $1.2 trillion dollar plan, or 6% of GDP. They are thinking of doing it the old fashioned way. Posting cheques to people. Apart from waiting for your post and then hoping the cheques clear, this has the benefit of being very quick, direct stimulus that everyone will notice straight away. Details are still being worked through at this stage though.
The Australian dollar is not faring well either. Using some very rough math the Australian government's bail out is only in the region of 1% of GDP. Everything is moving so quickly, but for now, that is not seeming like much by world standards. The AUD is bearing the brunt, breaking the key 0.6000 level, and getting us down to rates not seen since 2003.
Global equity markets are back down, Dow +3.4%, S&P 500 +3.8%, FTSE +2.8%, DAX -3.2%, CAC +2.8%, Nikkei +0.1%, Shanghai -0.3%.
Gold prices are up 2.1% to USD$1,523 an ounce. WTI Crude Oil prices are off 6.7% again, down to US$26.9 per barrel.
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