XE Morning Update

The NZDUSD opens at 0.6601 (mid-rate) this morning.

Currency markets have shown little reaction to the US China trade deal agreement and have been overshadowed by global equity markets which have surged higher.

US equity markets are currently trading at new record highs, while European and UK markets have also surged higher on the back of the trade deal news and Brexit optimism following last weeks’ UK election result.

This morning’s US economic data delivered mixed results with home builder confidence spiking to its highest level in 20-years, while the New York Fed reported its business conditions index inched up to 3.5 in December from 2.9 in November. The index had be forecast to increase to 4.0.

Data showing the UK private sector contracted the most since mid-2016 has had little effect on the pound. The latest decline is the second largest recorded in the past 10-years with the index falling to 48.5 in December, from 49.3 in November.

The key driver for the NZD during our trading day will be this afternoons ANZ business confidence data release which increased from -42.3 to -26.4.

Global equity markets are broadly higher, - Dow +0.65%, S&P 500 +0.88%, FTSE +2.25%, DAX +0.94%, CAC +1.23%, Nikkei -0.29%, Shanghai +0.56%

Gold prices are unchanged at $1,475 an ounce. WTI Crude Oil prices have inched higher, up 0.2% trading at 60.12 a barrel.

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