EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi Dollar opens at similar levels to yesterday, once again trading a narrow range as the market awaits tomorrow mornings US Fed rate decision. Last nights Global Dairy Trade auction had little impact on the NZD despite another increase in prices, with the index rising 1.9%, taking the gains since November up to 26%. Trading conditions are expected to remain subdued ahead of the FOMC tomorrow, with NZ GDP and Australian Employment numbers following later in the day.
Trade Talks Slowing?
Reports overnight suggest that trade talks between the US and China aren’t going so well, with China pushing back on American demands. US officials are concerned that progress is being slowed by these demands with negotiators now planning a new round of talks targeting a deal by the end of April. Earlier, US Agriculture Secretary Sonny Perdue said China could triple its purchases of American farm goods in the next five years as part of a trade deal. He also confirmed things are relatively quiet on the trade front, however there are signs of progress.
UK Employment Soars
The Pound was slightly firmer on the back of a better than expected labour report overnight, with 222,000 jobs being added in Q4, dropping the unemployment rate down to 3.9%, its lowest level since 1975. The rally in the GBP was limited as Brexit uncertainty continued to cap any gains. Prime Minister May’s Brexit plans were in crisis as the speaker of parliament ruled that she could not put her divorce deal to a new vote unless it was re-submitted in a fundamentally different form. European Union lawmakers are set to gather on March 21-22, to vote on whether to grant the UK an extension.
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