The Kiwi Dollar opens slightly higher this morning as global financial markets recovered after some positive comments from President Trump overnight. Trump took a more optimistic tone, saying that trade talks with China have not collapsed, and referred to the tariff war as “a little squabble”. Global stock markets have bounced back after heavy losses yesterday, while risk based currencies such as the NZD have also stabilized. The Japanese Yen was weaker, reversing its gains from Monday, amidst the recovery in risk assets.
The EUR lost ground overnight as Italy’s Deputy Prime Minister said the Country was prepared to break European debt rules if necessary, in order to stimulate the economy. Italy’s unemployment rate currently sits above 10%. Also weighing on the currency was a fall in the closely watched German ZEW sentiment survey, which was lower on fears of what the U.S-China trade war may bring.
U.S Retail Sales Tonight
No local NZ data today, with market focus being on trade war tweets and developments. Tomorrow sees the much anticipated Australian Employment numbers, but in the meantime overnight we have the closely watched US retail sales number. Market expectations are for sales to rise 0.2% month-on-month for April, and as always a surprise number either way will impact the Dollar.
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