EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi Dollar remained firm overnight adding slightly to gains made over the weekend as trade tensions continued to ease. Risk sentiment is on the improve with commodity currencies and global equities both responding positively as Trump and Xi Jinping agreed to a 90-day truce at the G-20 in Argentina. No data on the local front today, but there will be interest in tomorrow mornings GDT dairy auction first thing tomorrow morning.
Today sees the RBA cash rate decision, with no change expected. Of more interest will be tomorrows Australia Q3 GDP number where the market will look for further clues on the health of the economy. Following on from that we have Australia Retail Sales data on Thursday. The NZD/AUD cross is up around 0.4% as the Aussie gave back some gains made over the weekend.
The British Pound continued to lose ground despite better than expected manufacturing PMI data released overnight. Brexit headlines continue to be the main driver for the GBP and the currency will not make any meaningful gains unless PM May makes some tangible progress in selling the deal to the UK Parliament.
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