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Kiwi Drifts Ahead of Trade Deal

Published January 15, 2020

The Kiwi Dollar drifted lower yesterday with market movements being contained ahead of the signing of the US-China Phase-One trade deal, expected tonight. General market sentiment and risk appetite remains upbeat with equity prices once again moving higher, although currency movements have been relatively small. Meanwhile on the data front overnight, US inflation numbers came in lower than expected.

US Inflation Below Expectations

Data released earlier this morning showed US CPI rising by 0.1% in December vs market expectations of 0.2%, with the year-on-year number at 2.3%. Impact on the USD was limited with markets awaiting tonight’s trade deal signing.

All Eyes on Trade Deal

General expectation is that a US-China phase-one deal will be signed overnight, however there have been some reports surfacing that the US will keep tariffs on Chinese goods through the U.S election. Details of the agreement will be closely watched and will have a direct impact on market sentiment.

Rees Logan, Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (NZ) Limited on 30 March 2020. Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (Australia) Pty Ltd on 30 March 2020. Any queries regarding the Administrations should be directed to restructuring@nz.ey.com.