- NZD/USD rallies to 0.6635 on Sino/US trade-deal headlines.
- UK exit polls point to a Tory landslide which has underpinned risk appetite supporting commodity-FX.
NZD/USD has pulled back to 0.6620 a the time of writing following a spike to the 0.6635 session highs which came as a consequence to the news that US President Donald Trump signed off on the Sino/US trade deal in order to avert the December tariffs. The combined news of a Tory landslide exit-poll victory has propelled risk appetite to the best levels in months as investors finally get to see some rays of light a the end of the tunnel.
A consistent build-up in positive news flows surrounding the phase-one deal kept markets buoyed from the off overnight and underpinned the upside in the commodity complex. First off, US President Trump tweeted,
"Getting VERY close to a BIG DEAL with China. They want it, and so do we!"
Confirmation of such news was first reported on Bloomberg TV citing unnamed sources claiming that the US had reached a trade deal in principle with China which was awaiting Trump's sign-off.
Following the market close, Bloomberg reported that Trump signed off on the Sino/US trade deal which sealed the deal for the bulls and sent the kiwi on to the highest levels since July. There has been speculation that a deal would most likely "stop China issuing its second batch of tariffs on products such as corn, wheat, and rare earth magnets, and reinstating an extra 25% tariff on US-made vehicles and 5% on auto parts which had been suspended earlier this year," analysts at ANZ Bank said.
Meanwhile, the UK elections are in play with the results of the exit polls claiming a landslide victory for the Tory party which has sent GBP on a tear. The UK election exit polls give the Tory party a majority of 86 in what will be a “phenomenal victory” if the exit polls are accurate.
Exit poll results in full
And here are the full exit poll results.
- Conservative majority: 86
- Conservatives: 368
- Labour: 191
- SNP: 55
- Liberal Democrats: 13
- Plaid Cymru: 3
- Greens: 1
- Brexit party: 0
- Others: 22
NZD/USD levels
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