Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

XE Morning Update

The NZDUSD opens at 0.6613 (mid-rate) this morning.

The much awaited Phase 1 trade deal between China and the USA has now been signed. The deal requires China to buy increasing amounts of US Goods and services, including agricultural products and US Oil. Details are still being released but it is unclear at this stage what China has gained from the deal. Existing US Tariffs will stay in place until phase 2 talks begin but there is no timeframe set for these to start.

The deal looks slightly positive for the US and maybe China gains some breathing space from ever rising tariffs. There has been minimal reaction in the market and all eyes will now be on where China set their currency today as the deal is rumoured to have clauses in it in relation to currency depreciation. Over the past 18 months China has simply devalued their currency to fully offset the value of any US Tariffs, so where they let their currency settle will be key going forward.

In the markets the Australian Dollar is slightly stronger and the NZ Dollar is slightly weaker after the trade deal has been signed, reflecting China's commitment to buying more agricultural products from the USA. This has seen the NZDAUD cross rate drop down further into the mid 0.9570 area.

Tonight we get an update on US Retail Sales. Over the past year it has been the consumer sector that has underpinned the US economy so it will be interesting to see if this strength continues.

Global equity markets were again mixed overnight - Dow +0.41%, S&P 500 +0.18%, FTSE +0.27%, DAX -0.18%, CAC -0.14%, Nikkei -0.45%, Shanghai -0.54%.

Gold prices are a little higher at $1,554, while WTI Crude Oil is 1.1% lower trading at $57.81 a barrel.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: RBNZ To Implement $30bn Large Scale Asset Purchase Programme Of NZ Govt Bonds

The Monetary Policy Committee (MPC) has decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The negative economic implications of the coronavirus outbreak have continued to intensify. The Committee ... More>>

ALSO:

Elevate NZ: Venture Fund To Lift Productivity

The Government’s new $300 million venture capital fund - announced in last year’s Budget – is now open for business as the Elevate NZ Venture Fund. Finance Minister Grant Robertson says lifting New Zealand's productivity requires well-functioning ... More>>

ALSO:


COVID-19: Case Confirmed In NZ – Expert Reaction

After spreading across the globe for months, the first case of COVID-19 has been reported in New Zealand. The Ministry of Health says the risk of a community outbreak is low, due to their preparedness and the high awareness of the disease. The Science ... More>>

ALSO:

Agriculture: New Legislation To Boost Organics

New organics legislation will boost consumer confidence and help grow an innovative sector, says Food Safety Minister Damien O’Connor. “The Organics Product Bill, introduced to Parliament this week, aims to increase consumer confidence when purchasing ... More>>

ALSO:

Biodiversity Policy: Misinformation Circulating

Forest & Bird is concerned at misinformation circulating regarding a policy statement aimed at protecting New Zealand’s unique biodiversity. The National Policy Statement for Indigenous Biodiversity is being consulted on by the ... More>>

ALSO: