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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

NZD gets relief on talks of senior level US-China trade meeting

Published September 13, 2018

The NZD and AUD surge higher overnight as the US proposes a new round of trade talks with China. The Kiwi moved close to .1% higher off the low seen of .6500

  • Global risk appetite improved as senior US officials led by Treasury Secretary Steven Mnuchin sent an invitation to Chinese officials to hold another bilateral trade meeting in a move which could ease market worries on the escalating trade war.
  • To date, the US and China have hit $50 billion worth of each other’s goods with tariffs. The NZD came under pressure last week when President Trump said that in addition to preparing tariffs on another $200 billion worth of goods, he had another $267 billion worth of goods “ready to go on short notice if I want”. With the mid-term elections coming up in November President Trump may not want to be seen as reckless.
  • The Federal Reserve’s Beige Book signals ongoing U.S growth, despite soft US producer-price index coming in below expectations for August and as US businesses worried about international trade tensions.
  • Today’s key focus will be the Australian employment numbers due out at 1.30pm, with forecasts for unemployment to remain at 5.3%, and new jobs at 15K.
  • The European Central Bank and Bank of England meet tonight with markets widely expecting both Central Banks to leave rates on hold.
  • US CPI and retail sales the next key data risk