The Australian dollar weakened this morning to around $0.656, reversing gains from last week, as renewed tariff threats from Trump raise concerns of a potential global trade war. Trump has proposed a 200% tariff on Australian pharmaceuticals, which, if implemented, could cost the Australian economy up to A$2.8 billion. The ASX 200 has also taken a hit, falling by 0.1% this morning.
US and European indices have had a cautious start to the week, with Trump announcing a 30% tariff on goods from the EU and Mexico.
New Zealand’s BusinessNZ Performance of Services Index rose from 44.1 in May to 47.3 in June. However, this is still well below its long-term average of 52.9.
The Nikkei 225 Index fell 0.3%, hitting a two-week low as trade tensions continue. Japan’s core machinery orders fell 0.6% month-on-month, which was better than the expected fall of 1.5%.
In Hong Kong, the Hang Seng Index rose 0.2%, and in China, we are awaiting the announcement of the Trade Balance and USD-denominated trade balance.
Bitcoin rose 2.4% to new all-time highs at $121,987.48.
Ether rose 0.9% to $3,020.65.
Spot gold was little changed.
Crude rose 0.1% to $68.55 a barrel.
In the day ahead, France has a bank holiday in observance of National Day.
No high-impact data releases are scheduled today.
Markets are likely to focus on the week ahead, with US CPI, PPI, and retail sales all due this week.
