The impact of trade war fears generated by the ongoing rift between the United States and China is estimated to create less damage to global growth rates than initially expected. As a result, an improvement in risk sentiment sent the Japanese Yen and the US Dollar, as safe haven currencies, lower. Meanwhile, currencies associated with a higher risk environment, including the Aussie and Kiwi Dollars, are benefiting from the sentiment shift.
As reported at 10:06 am (JST) in Tokyo, the EUR/USD was trading higher at $1.18, a gain of 0.02% while the USD/JPY was trading flat at 112.48 Yen. The NZD/USD was trading higher at $0.6686, up 0.01% and off the earlier peak of $0.66917 while the low is at $0.66806. The AUD/USD was trading lower at $0.7286, down 0.05% and moving away from the earlier peak of $0.72947; the Aussie Dollar had gained almost 1.9% this week on the improvement in risk.
Eurozone's Preliminary PMI Data Expected
Ahead today, markets' attention will turn to the slew of PMI data coming out of the Eurozone. Generally, economists expect that the Markit Surveys for September will show some weakening in both the manufacturing and services sectors in France, while in Germany and the Eurozone, the manufacturing PMIs will show a slight decline and the services sectors are expected to be unchanged.