Both AUD And NZD Dropped As The US-CN Trade War Escalates - APAC Update

Xe Corporate APAC

13 maj 2019 3 min read

The AUDUSD opened lower at 0.6946, the NZDUSD opened lower at 0.6571 this morning.

The AUDUSD and NZDUSD were under selling pressure overnight as the trade war between the United States and China escalates, with each country raising tariffs on the other’s goods. The AUD and NZD are sensitive to the global growth outlook.

China plans to impose higher tariffs on USD$60 billion worth of US goods, after the US announced a tariff hike on USD$200 billion of Chinese products on Friday. China retaliated despite US President Trump’s warning against such action.

Global risk aversion spiked higher on fears the trade dispute between China & the USA could escalate further, and derail the global economy in the process. The VIX, a gauge of investor anxiety, spiked to its largest gain for the year, while global equity markets were hit hard with over USD$1 trillion wiped from stock values.

GBP News

The GBP weakened, notwithstanding reports the British parliament might still reach a cross-party consensus on a Brexit deal, as trade fears dominated.

Global equity markets were sharply lower on the day - Dow -2.7%, S&P 500 -2.8%, FTSE -1.6%, DAX -1.5%, CAC -1.2%, Nikkei -0.7%, Shanghai -1.2%.

Gold prices gained 1.1% to USD$1,299 an ounce on safe-haven demand. WTI Crude Oil prices fell 1.3% to US$60.900 per barrel on fears the trade dispute will weigh on global growth, which overshadowed news that two Saudi Arabia oil tankers were among vessels attacked near the Strait of Hormuz, a vital oil export waterway.

Mid-market Rates

AUDUSD0.6946-0.6%NZDUSD0.6571-0.2%AUDEUR0.6186-0.6%NZDEUR0.5851-0.2%AUDGBP0.5360-0.4%NZDGBP0.50700.0%AUDJPY75.92-1.0%NZDJPY71.82-0.7%AUDNZD1.0573-0.4%NZDAUD0.94600.4%GBPAUD1.86570.4%NZDCAD0.88510.1% GBPNZD1.97240.0%
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