EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi Dollar opens lower this morning as profit taking and renewed trade tensions between the U.S and China weighed on the local currency. The NZD is down against all major currencies giving back some of the gains made from last weeks impressive rally.
With a lack of key data and central bank announcements this week, there is a renewed focus on trade tensions between the U.S and China, triggered by developments from the APEC summit over the weekend. US Vice President Mike Pence was on the offensive calling on countries in the region to avoid lending from China that could leave them indebted to the nation. The summit ended without a closing statement for the first time ever and the increase in tensions is a concern for investors which has seen a sharp fall in U.S equities overnight. US President Donald Trump and his Chinese counterpart Xi Jinping are due to attend the G20 summit in Argentina later this month.
The Pound was relatively stable overnight after last weeks large fall. British Prime Minister Theresa May is set to speak to corporate leaders from around the UK today as she rallies backing for the current Brexit deal. Many critics predict the deal will fail to get sufficient support in parliament to pass a critical vote while the political fallout has left May fighting a confidence vote. Brexit-related concerns has seen confidence among British businesses sink to its lowest level in 9-years
There is little in the way of local data or announcements today, although there will be interest in tomorrow mornings Global Dairy Auction and whether prices have continued to fall. Across the ditch we have the RBA monetary policy meeting minutes, although markets are not expecting any new insights to come from this.
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