By Dan Bell
The NZDUSD opens at 0.6765 (mid-rate) this morning.
An escalation in the US China trade war has seen risk sold aggressively with global equity markets commodities and commodity linked currencies all sharply lower.
Yesterday US President Donald Trump ordered US Trade Representative Robert Lighthizer to begin the process of imposing tariffs of 10% on an additional $200 billion of Chinese imports.
Producer prices in the US came in ahead of expectations with the Labour department report showing its producer price index rose by 0.3% in June after climbing by 0.5% in May. Economists had expected prices to inch up by 0.2 percent.
The CAD is trading higher against all its rivals after the Bank of Canada hiked its benchmark rate by a 0.25% for a second time this year. In the accompanying statement the Bank governor said that higher interest rates would be necessary to keep inflation near target.
Crude oil prices are sharply lower after OPEC reported Saudi Arabia’s oil production increased by nearly 500,000 barrels per day in June as it ramps up supply to tame the cost of crude.
Global equity markets are sharply lower, – Dow -0.82%, S&P 500 -0.52%, FTSE -1.30%, DAX -1.53%, CAC -1.48%, Nikkei -1.19%, Shanghai -1.76%.
Gold prices are down 1% trading at $1,243 an ounce WTI Crude Oil prices have plummeted, down 4.1% trading at $69.58 a barrel.
Current indicative rates:
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »