XE Morning Update February 4 2020

NZDUSD 0.6463 0.0%
NZDEUR 0.5842 0.1%
NZDGBP 0.4971 1.4%
NZDJPY 70.22 0.1%
NZDAUD 0.9664 0.1%
NZDCAD 0.8588 0.3%
GBPNZD 2.0117 -1.4%

The NZDUSD opens at 0.6463 (mid-rate) this morning.

The British pound has been the big mover over the past 24-hours selling off amid fears of a hard Brexit after UK Prime Minister Boris Johnson said that he would not accept alignment with key EU rules warning that he was prepared to walk away from talks with the EU, if the UK did not get a free trade agreement. The pound is currently down circa 1.55 against its major trading partners.

As expected after the week long Luna holiday the China's Shanghai Composite index gapped lower on yesterday’s open and remained under pressure throughout the day eventually closing down 7.72%. The move due largely to concerns over the economic impact of the coronavirus was also aided by underwhelming economic data with china’s factory activity expanding at its slowest pace in five months in January, and industrial firms posting their first annual decline in profits in four years in 2019.

Economic data out of the US was mixed with the Commerce Department reporting construction spending unexpectedly dipped lower during December while after five consecutive months of contraction manufacturing activity surprised economists by expanding in January.

This afternoon the RBA are widely expected to keep rates on hold with the market currently pricing in a 15% chance of a 25 basis point cut.

Global equity markets are mixed, - Dow +0.59%, S&P 500 +0.86%, FTSE +0.55%, DAX +0.49%, CAC +0.45%, Nikkei -1.01%, Shanghai -7.72%

Gold prices are marginally lower, down 0.9% trading at $1,575 an ounce. WTI Crude Oil prices continue to slide down 1.8% trading at 50.64 a barrel.

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