The Kiwi Dollar drifted lower overnight as the US Dollar was firmer against most major currencies. The greenback was supported by hopes that trade talks between the US and China were progressing well. The negotiations had been set to conclude yesterday but have been extended to a third day. No reasons were given for the extension, however President Trump tweeted that talks with China were “going very well!”. Hopes of a positive outcome has boosted oil prices as well as equities. Meanwhile, President Trump is due address the nation on the national security crisis. Trump will give a prime-time address from the Oval Office Tuesday evening (US Time) in an apparent effort to convince lawmakers to fund a border wall, a demand that has led to a more then two-week partial government shutdown.
Australia Trade Surplus Drops 4.4%
Australia’s Trade Balance figures for November slipped below expectations once again, dropping to 1.925 billion vs a forecast of 2.17 billion. There was a near billion-dollar increase in combined gold, fuel, and metal ore exports, however this was offset by higher imports costs, and lower coal exports. The weaker data saw the AUD drop, and remained at lower levels on the back of a stronger USD overnight.
European Data Remains Soft
German industrial production unexpectedly dropped in November, a development that’s likely to fuel concerns that Europe’s biggest economy may have entered a technical recession in the final quarter of 2018. Data from the Federal Statistics Office showed industrial output was down by 1.9 percent, missing economist estimates for a 0.3 percent gain.
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