The Kiwi Dollar is up by close to 1% from this time yesterday, making gains on the back of a firmer Australian Dollar yesterday afternoon, and then a broadly weaker US Dollar overnight.
US Data Disappoints
US data releases overnight were on the soft side with industrial production, housing starts, and the Philly Fed business outlook all coming in below market expectations. The USD is generally weaker against most major currencies.
Australian Labour Data Improves
Yesterday saw the Australian unemployment rate edge lower to 5.2% vs market expectations of 5.3%. The Australian Dollar spiked higher on the news, as the likelihood of another interest rate cut from the RBA this year reduced. Like the Kiwi, the Aussie built on these gains overnight as the USD lost ground on weaker data releases.
UK Parliament To Vote On Brexit Deal
Brexit continues to remain in the spotlight, with news that PM Boris Johnson had manged to negotiate a new Brexit deal with the EU, but doubts remain whether the deal will pass through a UK parliament vote. The Pound is slightly down from the highs made earlier in the week, as markets await the outcome of the parliamentary vote tomorrow.
The day ahead sees several data releases out of China, including GDP, Retail Sales, and Industrial Output. Also of interest will be speeches from RBA Governor Lowe and New York Fed President Williams.
© Copyright - EncoreFX, 2018.The information in this post is provided for general information purposes only and has been prepared without taking into account any person’s objectives, financial situation or needs and, accordingly, it does not constitute personalised financial advice under the Financial Advisers Act 2008, nor does it constitute advice of a legal, tax, accounting or other nature to any person. Before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. We recommend that investors seek advice from their usual adviser before taking any action. EncoreFX (NZ) Ltd is a registered Financial Services Provider (FSP 461386), and is a licensed derivatives issuer under the Financial Markets Conduct Act 2013. EncoreFX (NZ) Ltd has lodged a Product Disclosure Statement (PDS) for each of our derivatives with the Registrar on 21-Dec-2016. A copy of each PDS is available from us or from the Registrar at www.business.govt.nz/disclose.