The Kiwi dollar edged lower on news that a US-China trade deal may be delayed until December.
Trade Deal Signing Potentially Delayed
A meeting to sign a trade deal between US and Chinese Presidents could be delayed until December as talks continue over the terms and venue. A senior US official said it was still possible the phase one agreement aimed at ending the damaging trade war would not be reached, but a deal was more likely than not. An interim deal is widely expected to include a US pledge to scrap tariffs currently scheduled for mid-December on around USD156 billion worth of Chinese imports.
NZ Unemployment Ticks Up In September
Data released by Statistics NZ on Wednesday showed the unemployment rate edged up to 4.2% in the third quarter, up from the surprise low 3.9% in the previous quarter. The NZD dipped on the announcement, however losses were limited with markets largely expecting a rise in unemployment and weak employment growth. Focus now turns to the RBNZ rate decision next Wednesday with markets split on the odds of a 25-basis point rate cut.
German Factory Orders Rise in September
The German factory orders showed some improvement in September as consumer’s spent more than was previously thought, new figures revealed on Wednesday. Overall, the factory orders rose to 1.3% against the expectation of 0.1% on monthly basis. The data suggests that the manufacturing recession in Europe’s largest economy may gradually be unwinding.
© 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.