The NZDUSD opens at 0.6875 (mid-rate) this morning.
Risk aversion continues to dominate markets with global equities sharply lower amid ongoing trade and growth concerns.
Yesterday’s China and Japanese data releases added to investor concerns about slowing growth with China’s trade balance showing November’s imports and exports came in below estimates, while Japan’s Q3 GDP result showed the economy contracted the most in four years with a final reading of -0.6% on the quarter and -0.3% y/y.
White House trade adviser Peter Navarro’s comments that US officials would raise tariff rates on Chinese imports if both countries could not come to an agreement during the 90-day negotiating period fanned fresh concerns over US-China trade relations.
The British pound tumbled to its lowest level against the USD in 20-months and is the worst performing of the G10 currencies after Theresa May aborted tomorrow’s parliamentary vote on her proposed Brexit deal. As it stands the deal "would be rejected by a significant margin" if MPs voted on it, she admitted. Mrs May set to sit down later this week with her European counterparts in the hope of getting "reassurances" on the Northern Ireland border plan.
Global equity markets are sharply lower , Dow -1.65%, S&P 500 -1.51%, FTSE -0.83%, DAX -1.54%, CAC -1.47%, Nikkei -2.12%, Shanghai -0.82%.
Gold prices are marginally lower, down 0.2% trading at $1,244 an ounce. WTI Crude Oil prices have reversed Friday’s move down 2.0% trading at $51.75 a barrel.