Risk Currencies Higher Across the Board

The AUDUSD opens at 0.6087 and the NZDUSD opens at 0.5932 this morning.

Risk is up across the board, as there is some talk out of the US that another 1.5 trillion stimulus package is on the way by month end. Coronavirus cases are also appearing to taper off globally. Angela Merkel from Germany even came out to say now is not the time to talk about easing restrictions. A comment like that by definition means you are talking about it, and that is a positive step. It will be a tightrope to walk the easing of the lockdown, with the ramifications of going too early fairly dire. It is going to be a problem for a few weeks away at the very least, especially for Europe, but the closer we get to it and “business as usual” then the more risk currencies will pick up.

Australia especially is seeing a strong drop off in the rate of case growth. They have tested aggressively from the outset, the result of which means their cases initially appeared higher than somewhere like New Zealand. The strong drop off is really positive for everyone getting back to work quickly, and with China seemingly back online, Australia could be well poised to bounce back swiftly.

In other sad news, Boris Johnson has now been moved to intensive care. The 55 year old PM has asked his Foreign Secretary Dominic Raab to deputise for him where necessary.

The Reserve Bank of Australia's rate statement is out at 3:30pm AEST this afternoon, which will be worth watching.  

Global equity markets are off, Dow +6.0% S&P 500  +5.9%, FTSE +3.1%, DAX +5.8%, CAC +4.6%, Nikkei +4.2%, Shanghai -0.6%.

Gold prices are up 2.6% to USD$1,660 an ounce. WTI Crude Oil prices are off 9.8% to $26 a barrel.

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Australia Morning Update | New Zealand Morning Update