The Kiwi Dollar edged higher overnight as the dust settled from a volatile week in markets due to trade war news and concerns over the global economy. Some of these concerns were eased overnight with Australian jobs data, and US and UK sales numbers all beating forecasts. Equity markets have clawed back some losses from earlier in the week, while safe have currencies, JPY and CHF, were both weaker after good gains earlier in the week.
U.S Retail Sales Beat Forecasts
The greenback has been mostly firmer overnight as sales data came in above expectations. US retail sales rose by the most in four months and exceeded projections in July on a surge in online purchases. The value of overall sales climbed 0.7% after a (downward revised) 0.3% increase in the prior month. While the USD was firmer, gains were capped as trade war concerns continue to cast doubt on the state of the economy.
Aussie Firmer on Employment Numbers
The Australian Dollar made ground yesterday after a stronger than expected employment report. 41,000 new jobs were created in July, with the unemployment rate staying at 5.25% for the fourth consecutive month due to a rise in the labour market participation rate. The Kiwi Dollar has lagged behind the AUD seeing the NZD/AUD cross rate lower this morning.
The GBP was the best performing major currency overnight with better than expected sales numbers giving the currency a boost. Meanwhile Labour leader Jeremy Corbyn called on opposition leaders and conservative rebels to stop a no-deal Brexit by ousting Boris Johnson as PM, allowing Labour to form a caretaker government until a general election can take place.
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