The Kiwi Dollar opens lower this morning giving back yesterday’s gains as the US Dollar made ground across the board. Disappointing data out of Germany overnight renewed concerns over the state of the global economy which may have also contributed to NZD weakness. The next big event is tonight’s US non-farm payrolls, with the market expecting a gain of 175,000 jobs.
Concerns Over Euro Zone Economy
German manufacturing orders fell at their fastest pace in two years in February, a new warning sign over the health of the Eurozone’s largest economy. New factory orders fell 4.2% from the previous month as foreign orders slumped, the biggest fall since January 2017.
U.S – China Trade Talks Progress
Optimism continues to grow that a successful deal will be reached between the world’s two largest economies. President Trump will meet Chinese Vice Premier Liu He at the White House today, as Beijing and Washington draw closer to a solution. If an agreement is not reached this week, the two countries could opt to extend negotiations, potentially until the G20 summit in Japan at the end of June.
NZD/AUD Cross at 8 Week Low
The Australian Dollar remained well supported after some strong data this week. Stronger iron ore prices and optimism over a potential US – China trade deal are also AUD positive. The NZD/AUD cross rate has continued to fall, touching on an 8 week low overnight.
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