The NZD is trading higher against all its rivals with risk appetite returning after news broke that the US and China have engaged in talks for refining access of US goods to China.
US Treasury Secretary Steven Mnuchin during a Fox News interview, stated “We’re having very productive conversations” with China, and that he is “cautiously hopeful” a trade agreement can be reached. US equities rallied strongly on the news with the Dow currently up 2.0%.
The EUR strengthened overnight after ECB Governing Council Member Jens Weidmann said the ECB should begin policy normalization without any delay, and hopes for a rate hike around mid-2019 are “not completely unrealistic,”. Mr Weidmann who also heads the Bundesbank was speaking at a conference at the Austrian Central Bank.
This morning FOMC Member Loretta Mester is due to speak about the economic outlook and monetary policy at Princeton University while overnight tonight US consumer confidence index is expected to nudge up to 131.2 in March a slight increase from February’s 130.8 reading.
Global equity markets are mixed – Dow +1.84%, S&P 500 +1.50%, FTSE -0.48%, DAX -0.83%, CAC -0.57%, Nikkei +0.72%, Shanghai -0.60%.
Gold prices are up 0.6% trading at $1,354 an ounce. WTI Crude Oil prices are down 0.5% over the past 24 hours, trading at $65.36 a barrel.
Current indicative rates:
Upcoming Data releases (NZST):
- 09:30 – FOMC Member Mester Speaks
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