The Kiwi Dollar continued its recovery from multi year lows making ground overnight on weaker than expected U.S data. The NZD is up around a cent from its lows earlier in the week, and along with the AUD, has been one of the best performing currencies overnight. This afternoon sees the release of Australian Retail Sale data for August which will no doubt have a bearing on the AUD later today.
USD Falls on Weak Data
The ISM Non-manufacturing survey fell to 52.6 from 56.4 the previous month, and vs market expectations of 55.0. The number was the lowest since August 2016 and ramped up expectations of another US Fed rate cut. The disappointing number came just a day after weaker than expected manufacturing data and has seen the USD lose ground across the board. President Trump has blamed the Federal Reserve for the sharp decline in manufacturing activity and accused the central bank and its chairman, Jerome Powell, of harming US exporters by keeping the value of the dollar too high.
All Eyes on Non-Farm Payrolls
With disappointing economic data out of the U.S over the past couple of days, there will be increased focus on tonight non-farm payrolls. Markets are expecting 145,000 jobs to have been added in September, a slight rise from the August number. However the worse than expected ISM numbers released this week point to a significant downside risk to this estimate.
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