The Kiwi Dollar has held on to its gains overnight as market sentiment took a turn for the better with news that the U.S and China were set to resume trade negotiations this month. Safe haven currencies and commodities have all taken a tumble on the news after recent gains. Meanwhile the British Pound was well bid, continuing its recovery on renewed Brexit optimism.
Trade Talks to Resume
Market sentiment improved overnight with the US and China agreeing to resume face-to-face negotiations in a bid to ease tensions in their rapidly escalating trade war. Both nations will hold trade talks in Washington early next month, according to a statement released by China’s Commerce Ministry.
U.S Data Positive
Better than expected data out of the U.S overnight lent support to the USD after the currency had earlier run into selling pressure. ADP and ISM services data were ahead of market forecasts and has reduced expectations of a near term Fed rate cut. Although, New York Federal Reserve President John Williams said that the US economy looks weaker than previously thought and acknowledged that sluggish inflation is one of the central bank’s most pressing issues. Attention now turns to tonight’s U.S non-farm payrolls number, with the market expecting around 160,000 jobs to have been added in August.
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