EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi remains under pressure as trade talks delayed between the US and China. Brexit uncertainty also continues to weigh on the NZD.
NZD Down on US-China Trade Concerns
A meeting between US President Trump and Chinese President Xi Jinping to come to an agreement to bring an end to the trade war is no longer happening this month and unlikely to occur until late April at the earliest. US Trade Representative Robert Lighthizer, provided testimony before the Senate Finance Committee yesterday, stating that America must keep the option of raising tariffs as a way to seek compliance from Beijing.
In data, US weekly jobless claims rose more than expected to a 4-week high and a sharp decline in new home sales for January support market expectations, that the Fed will continue to hold interest rates.
Pound Eases as UK PMs Back Brexit Delay
UK Lawmakers voted overwhelmingly to seek a delay to Britain’s exit from the European Union by 412-202 votes. PM May will now need to try again to get her twice-rejected divorce deal approved in parliament by next week and is pressuring rebel MPs to back her, threatening a longer delay if they reject her deal. The pound eased as optimism fades with no sign of a deal being agreed.
Chinese Activity Underwhelms
Chinese economic data released yesterday offered little support for the NZD and AUD, showing that growth in industrial output fell to a 9-year low of 5.3%, retail sales and unemployment also looking soft. The data shows signs of stabilization on demand, but the production side has continued to lose momentum.
Data this morning is NZ PMI and migration, Bank of Japan Monetary Policy announcement later today ahead of US industrial production and consumer sentiment data released tonight.
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