Collinson FX:October 1, 2019 - Business confidence drops NZD
by Collinson FX 1 Oct 2019 12:31 BST
2 October 2019
The NZ mens 470 bursts through a wave - Day 4, 2016 Olympic Regatta © Richard Gladwell / Sail-World.com
Markets rebounded strongly, to open the week, after US officials refuted the rumours of US/China Capital restrictions. White House official Peter Navarro dismissed the rumours, that swept the markets Friday, as ‘fake news’.
EU CPI was zero, confirmation that growth and inflation in the EU is dead, while Unemployment did show some signs of improvement, falling to 7.4%. The EUR fell below 1.0900, while the GBP traded 1.2280, after UK GDP beat expectations and remained positive. The British PM Johnson has refused to step down and committed to Brexit by 31st of October, Halloween. Brexit will be a huge boost to the British economy, assuming they do not have an intermediary, poor deal.
Local markets will keenly await todays RBA decision, which is expected to further stimulate the economy, with a further rate cut. The RBA will likely cite the dangers posed by the US/China trade threat and the associated growth problems. This will probably not impact the currency as expectations are high. The AUD trades 0.6740, while the NZD fell back to 0.6260, after another deplorable Business Confidence number. NZ Business Confidence slumped to another low, reflecting the business perception of current Government policy.
Markets await the RBA and developments surrounding the US/China trade war.
Collinson FX: September 30, 2019 - Antipodeans vulnerable to Trade War
Markets closed out the previous week lower, after news of capital investment changes in the US, may impact Chinese and US companies.
The US is considering reviewing capital investment of Chinese companies in the USA and possibly de-listing companies on existing exchanges. There is also talk of limiting US investment in China. This disrupted markets and equities which closed the week lower. The EUR drifted back to trade 1.0940, while the GBP crashed to 1.2285, following further Brexit chaos. The Brexit train crash continues on unabated and can only be determined in a general election.
The AUD remains under pressure, trading 0.6750, while the NZD surrendered 0.6300. These commodity currencies are extremely vulnerable to the US/China trade war and the new front, that has opened up on capital investment, does not help. US/China Trade negotiations resume on October the 10th so this week will be driven by speculation and developments. US Employment will come into focus later in the week, while the all-important NZ Business Confidence number, out Monday, has been known to move the local currency.
Catch the new look Collinson FX website at www.collinsonco.com
Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site
Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |