The New Zealand Dollar opens higher this morning as the US Dollar was broadly weaker on renewed trade war concerns. The Kiwi was higher across the board with most cross rates making good gains overnight. On the data front, both UK and Canadian CPI came in on target, while Euro Zone inflation was slightly above market expectations.
Trump Reignites Tariff Threats
The US Dollar lost ground overnight as President Trump restated that he could place additional tariffs on Chinese imports. The Chinese central government responded by saying further levies would complicate negotiations which are just starting to get back on track. Also weighing on the USD was weaker than expected housing construction data released overnight, with Building Permits falling 6.1% in June compared to a 0.7% increase in May.
Market Focused on Australian Employment Data
On the news front today, all eyes will be on Australian labour market data due out at 1.30pm this afternoon. The employment numbers will be important for RBA rate cut expectations, and will also have a potential impact on the RBNZ’s interest rate outlook.
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