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Kiwi Drifts Lower | Markets Await Non Farm Payrolls

Published January 10, 2020

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.

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.