The New Zealand dollar opens firmer today, bouncing off near decade lows on weak US data.
US Private Payrolls Report Shows Pace of Hiring is Slowing
In the US, the ADP employment report resulted in a modest 135k new jobs in September, missing expectations of 140k in a sign that hiring is slowing as trade wars take its toll on the US economy and employers grow cautious. The disappointing data comes ahead of the closely watched US Non-Farm Payrolls on Friday night with expectations for 145k new jobs added in September. The reports came a day after the dismal US factory activity which contracted to its lowest level in more than a decade and continues to weigh on the USD.
WTO Approves USD7.5 billion US Tariffs on EU Goods
The World Trade Organisation approved the US to impose import tariffs worth USD7.5 billion on European goods after ruling in favour of the US in Airbus dispute and sparking fears of a new trade war. The EU Trade Commissioner labeled any fresh tariffs imposed by the U.S. as “short-sighted and counterproductive” and would only cause harm to businesses and people on both sides of the Atlantic. In reaction, European stock markets plunged by nearly 3%.
British PM Boris Johnson Unveils Final Brexit Proposal
British Prime Minister Boris Johnson announced a revised Brexit proposal to the European Union. Johnson urged the EU to compromise but warned the EU that he remains prepared to take the UK out of the bloc at the end of October without a deal. EU commission President Jean-Claude Juncker welcomed the “positive advances” but said there are still some problematic points that will need further work, notably with regards to the governance of the Northern Ireland backstop.
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