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.
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