New Zealand’s electronic card retail sales dropped by 0.5% in September, following a 0.7% increase in August. This decline shows a decrease in consumer spending compared to the previous month. The US Dollar Index stayed stable above 99.00, as hopes for resolving US-China trade tensions persisted. The Australian Dollar also held its ground after the Reserve Bank of Australia’s meeting minutes were released.

China US Trade Concerns

China’s Commerce Ministry has urged the US to change its recent practices. The People’s Bank of China set the USD/CNY reference rate at 7.1021, slightly up from 7.1007. Silver prices surged to over $52.50, reaching an all-time high due to a significant short squeeze. The EUR/USD pair is trading lower, approaching 1.1550, weighed down by the strength of the US Dollar. Similarly, the GBP/USD fell by 0.13% as the US Dollar gained traction. Gold prices continue to rise amid ongoing geopolitical uncertainties. Dogecoin is showing signs of recovery after a recent market downturn.

Market Rebound

The US stock markets bounced back on Monday after tension eased, helping to restore some normalcy. Pi Network is recovering but may face supply pressure due to changes in core team wallets. The recent drop in New Zealand’s electronic card sales to -0.5% for September confirms a concerning trend. This follows a reported 0.5% decline in total retail sales volume for the June 2024 quarter by Stats NZ. It seems that the high official cash rate from the Reserve Bank of New Zealand is finally impacting consumer spending. For derivative traders, it’s a good time to consider buying put options on the New Zealand dollar against the US dollar. With the NZD/USD around 0.5800, there’s potential for further declines, similar to the lows seen in late 2022. This weak consumer data suggests little chance of a quick rebound for the kiwi. This situation is not just unique to New Zealand; it’s part of a larger trend toward safety in global markets. Gold and silver are reaching new all-time highs, with silver now exceeding $52.50 an ounce, indicating widespread economic anxiety. The CBOE Volatility Index (VIX) is above 20, signaling that market participants are hedging against future uncertainty. Therefore, we should prepare for ongoing fear in the markets, favoring long positions on precious metals. The strong short squeeze in silver and continued gold buying create significant upward momentum. Any price dips should be seen as chances to strengthen these bullish positions, as geopolitical and economic concerns are likely to linger. Create your live VT Markets account and start trading now.

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