The Kiwi Dollar opens lower today as Middle East tensions continued to ease. Markets are now looking to once again focus on upcoming economic data and developments in the US – China trade situation. Overnight we have once again seen stock markets rise, oil prices fall, and safe haven currencies give back recent gains with the Japanese Yen falling to a 2 week low vs the US Dollar.
All Eyes on US Data
Tonight’s focus turns to the US non-farm payrolls report with markets expecting 160,000 jobs to have been added, compared to 266,000 the previous month.
Brexit Given Green Light
UK Lawmakers have finally approved legislation which will allow Britain to leave the EU on January 31st with an exit deal. No significant impact on the currency with the Pound drifting lower after dovish comments from Bank of England Governor Carney, which have increased the odds of a UK rate cut.
The Day Ahead
Nothing of note on the local front, but there will be keen interest in this afternoon’s Australian Retail Sales number, and then of course the US non-farm payrolls report early tomorrow morning NZ time. Looking further ahead, expectations are growing that the US and China will sign a trade deal next week, which should provide underlying support for risk assets.
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