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NZD Drops Below .6300 as US-China Trade Deal Looks Slim

Published October 8, 2019

The Kiwi fell below the .6300 level overnight with markets remaining skeptical as trade talks get underway.

Markets Remain Cautious Ahead of Trade Talks

US and Chinese trade negotiators began a new round of talks on Monday ahead of high-level trade talks that begin on Thursday. Senior Chinese officials have indicated a range of topics they’re willing to discuss has narrowed considerably with Vice Premier Liu He, stating he would bring an offer that won’t include commitments on Chinese industrial policy or government subsidy reforms.

Upcoming Announcements Today

  • Across the ditch, we’ll be watching the Australian NAB Business Confidence at 12.30pm
  • Locally, focus turns to the NZ Governments accounts release today at 1pm, the results are expected to be reasonably healthy, where markets will be focusing on whether the Government are increasing their spending to support our economy.
  • In China, the Caixin Services PMI report will be released at 2.45pm.
  • European Council President Donald Tusk and the head of the EU parliament meet with German Chancellor Angela Merkel for talks ahead of the make-or-break Brexit summit of all EU Leaders on 17-18 October.

Later in the week, meeting minutes from the Fed and ECB will be keenly watched for further clues on the monetary policy path.