The Kiwi dollar opens higher this morning as risk sentiment improves on a series of geopolitical news, with fears of a no-deal Brexit fading, the Italian government finally forming a new coalition and Hong Kong’s leader pulling the contentious extradition bill.
UK Lawmakers Vote to Stop No-Deal Brexit
The pound rose as concerns of a no-deal Brexit faded with British Prime Minister Boris Johnson suffering a major setback after lawmakers vote to block ‘no-deal’ Brexit. PM Boris Johnson is now calling for a snap election on 15th October.
China’s Service Sector Expands in August
In China, the Independent Caixin survey of services purchasing manager index (PMI) showed their services business activity rose to 52.1 in August, from 51.6 in July and rising at its fastest pace in three months. The upbeat data provided further support for the NZD and AUD.
Australia’s Economy Slows to Decade Low
Australia’s economy grew 1.4% in the year to June, the slowest pace in ten years. This was largely driven as consumers held back on spending. Markets are now fully pricing in a 25 basis-point cut from the Reserve Bank of Australia in November and a further interest rate cut in March has been penciled in.
Today markets will be watching the Australian Trade Balance at 1.30pm and tonight’s US ADP employment report following by their Factory orders.
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