The Kiwi Dollar opens flat vs the USD today despite some large moves across financial markets after President Trump announced a new round of tariffs on Chinese imports. Risk was back on the table, with gold spiking, and safe have currencies JPY and CHF both making good gains.
Trump Announces New 10% Tariff
Equities, global interest rates, and oil all spiked lower as news hit of new 10% tariffs on another $300 billion of Chinese products from September 1st. The tariffs would be in place just before Chinese officials were expected to arrive in Washington for the next round of trade talks. However these planned talks may now be in doubt. Markets were caught by surprise, causing some large moves this morning.
U.S Data Misses Ahead on Non-Farm Payrolls
Prior to the tariff news, the closely watched U.S ISM Manufacturing PMI number came in below market expectations at 51.2 vs forecasts of 52.0. The July result was disappointing, and there will, as always, be much interest in tomorrow morning’s non-farm payroll number, where markets are expecting the U.S economy to have added 169,000 new jobs in July.
Aussie Takes Heavy Fall on Tariff News
The Kiwi Dollar has surprisingly avoided any major falls on this morning’s tariff news, while the Australian Dollar has been one of the hardest hit dropping around 1%, which has seen the NZD/AUD cross rate make some good gains this morning. More potential volatility for the AUD today with retail sales data due this afternoon.
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