A relatively quiet start to the week with the NZ Dollar continuing to trade around the 64 US Cent level, with markets largely waiting for US data to be released later in the week. Of the major currencies only the GBP made meaningful gains, up around 0.4% on the back of weekend polls showing the Conservative Party extending its lead over Labour. The day ahead sees NZ Retail Sales data at 10.45am, while RBA Governor Lowe is set to give a speech in Sydney later this evening.
Markets Stand By For US Data
Markets are looking towards US data due for release from tonight through until the end of week including Trade Balance, Consumer Confidence, Durable Goods Orders, GDP, and PCE Core data. Also on the agenda is US Fed Chairman Powell who is giving a speech this afternoon at 1.00pm NZ time.
Phase One Trade Deal Getting Closer?
In trade war news, China has taken a step towards bridging the intellectual property gap, which is a major barrier for a trade deal with the US. Chinese authorities have announced they will increase penalties for violating IP rights and may even lower thresholds for criminal punishment. This may have cleared the way for yesterday’s headlines from the Global Times in China, which stated the two sides have basically reached “broad consensus” for a phase one deal. The positive news has had little impact on risk sentiment, with markets still looking for more official progress in the trade situation.
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