The New Zealand dollar bounced a touch higher with no major data announcements out overnight. USD weakness seen as the US 10-year yield pulled back 1.9 basis points after it topped 3.25% for the first time since 2011.
IMF cuts global economic growth forecasts on tariff war
The International Monetary Fund has downgraded its global growth forecasts for 2018 and 2019 as trade tensions between the US and China takes its toll on economic activity worldwide. The IMF said it was now forecasting 3.7% global growth for this year and next, down from its July forecast of 3.9%. The NZD initially fell on the announcement and has since pared back losses overnight.
US President Trump repeated threats to impose additional tariffs on USD267 billion worth of Chinese goods if China retaliates on trade.
Pound pushes higher on Brexit optimism
Brexit negotiations have ramped up ahead of next weeks summit, with the EU signaling its officials believe a deal is within reach. UK Brexit Minister Dominic Raab said he expects to see progress on their divorce when they meet on 18th October. Sticking point remains on the Irish Border with Raab asking the bloc to meet “halfway” on the most difficult areas. Sentiment was positive, and the GBP rose on comments.
Locally we have NZ September credit card sales at 10.45am and later in the day across the ditch we have the Australian consumer sentiment
Tonight: UK GDP and US Producer Prices with key US CPI data on Thursday night
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