The Kiwi dollar opens little changed today, with trade tensions between the US and China easing following the signing of a phase one deal and update economic data out of China.
China Data Boosts Optimism
Economic data from China on Monday was encouraging with better than expected Industrial production and retail sales growth in November. The Industrial output index showed an increase of 6.20% yoy in November and smashing forecasts of 5%. Retail sales were up 8%, beating expectations of 7.6%. The upbeat data provided optimism in markets and sent global stocks higher. Markets now await details of a phase two trade deal between the US and China, which Trump has commented talks would start immediately.
Trump on Path to be Impeached
The Democratic-led house is likely to vote on impeachment charges this week, and all signs are pointing to Donald Trump becoming the third US president ever to be impeached. No US president has ever been removed from office, and with the Republicans controlling the Senate, it’s unlikely that Trump will be the first. The true impact of these proceedings is expected to be on the 2020 election campaigns, where both parties are likely to use the fallout as political fuel to fire up their base and attempt to sway undecided voters.
NZ Consumer Confidence Jumps in Q4
The Westpac-McDermott Miller consumer confidence survey released this morning increased in the fourth quarter after falling most of the year. The index showed a jump of 109.9 from 103.1 in the previous quarter, signaling consumers are more optimistic.
Later today we see the ANZ business confidence survey at 1pm and tonight will be the latest dairy auctions with another dip in whole milk prices expected.
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