Kiwi leads the FX front, risk on, Wilbur Ross with optimistic negotiation comments

We begin the new trading week with optimism, with the Kiwi leading in strength on the FX front.

Japan is resting today, so volatility is extremely low, but there is still some activity.

Both the Australian dollar and the New Zealand are the most active, recording gains after optimistic comments about talks by US officials. This time, Wilbur Ross said US companies would soon be able to trade with Huawei again.

The titles are repeated as a whole or as little as possible, in this case, which gives a constant fresh impetus to the stock markets and currencies directly affected by the trade war. This happens even if the deal is already priced at 99%.

What is also observed is that market players are beginning to see that the world economy is in better shape than originally thought. On the Asian front, Westpac reduced its dividend, but the board remains optimistic about the situation in 2020. There is a general feeling that interest rates are starting to work around the world.

This boosts AUD and NZD, despite weaker retail sales data from Australia limiting upward movements.

Already with the start of the Asian session, one can feel the risk on the mood.

Read more:

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• What’s ahead for the Australian dollar for the next year
• The festive mood of the FX markets is felt