The Kiwi Dollar traded a narrow range overnight and begins the day slightly up from yesterdays levels. Once again a lack of meaningful data and market cautiousness over trade wars and tweets from President Trump kept things in check. On the local front today, we have NZ Trade Balance data due at 10.45am, while across the ditch there will be much interest in Australian CPI numbers this afternoon.
The euro headed towards a two-week high as surveys showed euro zone business growth remained robust, although fears of a trade war with the United States kept the single currency trapped in narrow ranges.
Chinese financial markets are rising in the wake of government moves to stimulate the economy. These moves appear to be driven by the need to defend themselves against the Trump tariffs and involve an additional US$200 billion in infrastructure spending. The CNY has continued to slide, trading at 6.4 to the dollar, its weakest level in more than a year, while the Shanghai Stock Exchange rose by an impressive 1.6% yesterday.
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