The NZD opens below the 64 cent level against the USD, paring back losses from yesterday’s low of .6339 as trade tensions ease ‘a bit’.
China Wants A “Calm” Resolution In US Trade War
Top Chinese negotiator Vice Premier Liu He commented overnight that China was willing to resolve the trade dispute through “calm” negotiations and opposed any increase in the escalation of the trade war. Trump suggested there’s a better chance of a deal now than there has been in some time, however also commented to media “This has to be a deal that’s better for us and if it’s not I don’t want to do business”. The USD and US stocks rose on the announcement, and also provided some relief to commodity currencies as market concerns somewhat cooled.
German Recession Fears Grow
In Germany, business sentiment deteriorated more than expected in August after hitting its lowest level in nearly 7-years. The closely watched IFO survey stated its business climate index fell to 94.3 in August from an upwardly revised 95.85 in July. As a result, the Euro dipped with both trade tensions between the US and China easing from Friday’s fallout, and after the weak data renewed recession fears in Germany.
UK PM Johnson Prepared To Take Brexit Talks To The Last Minute
Sterling fell as British Prime Minister Boris Johnson is prepared to take Brexit talks with the EU down to the last minute, with the October 31 deadline nearing. Uncertainty remains high with the possibility of a disorderly Brexit which will be Pound negative.
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