The Kiwi Dollar opens higher this morning although still within its recent range around the 64 US cent level. The local currency was boosted by better than expected retail sales data, which showed 1.6% growth for Q3 vs Q2. Markets had been expecting an increase of just 0.5%. Elsewhere, most currencies were stuck in their recent ranges, with the first batch of this weeks US economic data released last night not having much of an impact.
US Data Mixed
The USD was mainly firmer, making ground vs the EUR and JPY, as data released last night was mixed. US Consumer Confidence was weaker than expected, dropping for the fourth consecutive month, while the US goods trade deficit unexpectedly narrowed in October. US Fed Chairman Powell spoke in Rhode Island last night signalling that monetary policy is likely to be on hold for the foreseeable future, barring a material change in economic conditions.
GBP Weaker on Election Polls
The British Pound gave back some of its recent gains after the release of the Kantar poll, which showed the left-wing Labour Party had narrowed the lead of the Boris Johnson-led Conservatives. The Pound direction hinges on the UK December 12 election result, with a Conservative majority perceived as the most bullish scenario for the currency.
The Day Ahead
On the local front we have NZ trade balance data at 10.45 this morning, while overseas we have more US data this evening with Durable Goods Orders, GDP, and PCE Core data all due at 2.30am tomorrow morning.
© Copyright - EncoreFX, 2018.The information in this post is provided for general information purposes only and has been prepared without taking into account any person’s objectives, financial situation or needs and, accordingly, it does not constitute personalised financial advice under the Financial Advisers Act 2008, nor does it constitute advice of a legal, tax, accounting or other nature to any person. Before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. We recommend that investors seek advice from their usual adviser before taking any action. EncoreFX (NZ) Ltd is a registered Financial Services Provider (FSP 461386), and is a licensed derivatives issuer under the Financial Markets Conduct Act 2013. EncoreFX (NZ) Ltd has lodged a Product Disclosure Statement (PDS) for each of our derivatives with the Registrar on 21-Dec-2016. A copy of each PDS is available from us or from the Registrar at www.business.govt.nz/disclose.