The Kiwi Dollar opens higher today as risk appetite returned to global markets on the back of renewed optimism surrounding the latest round of trade talks between the U.S and China. Also supporting the NZD was a stronger Australian Dollar which was boosted by better than expected local data yesterday.
U.S – China Trade Talks Show Positive Signs
Global markets edged higher overnight as US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin were due to resume negotiations with Chinese Vice Premier Liu He in Washington. Both sides have reported progress from talks in Beijing last week with most of the issues standing in the way of a resolution having been addressed. The main outstanding issue is how to deal with existing US tariffs on Chinese goods, which Beijing wants to see removed, while the US is focused on the terms of an enforcement agreement to ensure China abides by any deal.
USD Slips on Weaker Data
The US Dollar ran into selling pressure last night, despite renewed optimism over trade talks, as weaker than expected economic data disappointed the market. Non-manufacturing ISM, and ADP employment, both missed market expectations and places even more importance on this weekends non-farm payrolls due out Saturday morning NZ time.
AUD Firmer On Strong Retail Sales Data
The Australian Dollar was the strongest performer of major currencies, benefitting from some upbeat economic data released yesterday. Both the Trade Surplus and Retail Sales for February were well ahead of market expectations, which perhaps lessens the likelihood of an RBA rate cut in the near term. The NZD/AUD cross rate continued to drift lower as the Aussie rally outpaced the Kiwi.
© 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.