EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi Dollar has held firm overnight, opening the day at similar levels to yesterday. The recent risk-off tone has returned to the market, with all eyes on a possible announcement from President Trump on further tariffs on Chinese imports. The risk-off tone has seen safe haven currencies JPY and CHF perform well overnight.
In the U.S, the period of public consultation on the proposed 25% tariffs on an additional $200bn of Chinese imports ends this morning. President Trump will be free to make his decision, and he is expected to act on the measures soon after the deadline passes. Markets will be looking for any detail in the announcement, such as phasing and whether Trump also threatens tariffs on the full $500+b of Chinese imports. Of course, Trump might also decide to wait a week or two before making a decision. Currencies are moving sideways waiting for the announcement. It looms as a big 24 hours for the Greenback with U.S non-farm payrolls out overnight.
The NZD and AUD are both at similar levels to yesterday with any big movements likely to be triggered by U.S Dollar news over the next 24 hours. Locally today, RBNZ Governor Orr is giving his first official speech since his appointment. He is expected to discuss global trade tensions and implications for the NZ economy. Across the ditch, yesterdays Australian trade balance number was better than expectations, but had limited impact on the AUD. Barring any announcement from President Trump on tariffs, trading is expected to be range bound for the NZD and AUD ahead of the U.S non-farm payrolls data tonight.
© Copyright - EncoreFX, 2018.The information in this post is provided for general information purposes only and has been prepared without taking into account any person’s objectives, financial situation or needs and, accordingly, it does not constitute personalised financial advice under the Financial Advisers Act 2008, nor does it constitute advice of a legal, tax, accounting or other nature to any person. Before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. We recommend that investors seek advice from their usual adviser before taking any action. EncoreFX (NZ) Ltd is a registered Financial Services Provider (FSP 461386), and is a licensed derivatives issuer under the Financial Markets Conduct Act 2013. EncoreFX (NZ) Ltd has lodged a Product Disclosure Statement (PDS) for each of our derivatives with the Registrar on 21-Dec-2016. A copy of each PDS is available from us or from the Registrar at www.business.govt.nz/disclose.