img NZ
img AUS
img CDN
img US
Call us now: 0800 00 56 17
imgOnline Dealing Login

NZD Trades Narrow Range as U.S – China Trade Talks Continue

Published May 10, 2019

The Kiwi Dollar opens slightly higher this morning as the dust settles from the RBNZ rate cut earlier in the week. U.S – China trade wars continue to dominate the headlines with investors taking a risk-off approach until there is further news.

Trade Talks to Resume This Morning

Official trade talks have just kicked off in Washington as the U.S and China try to iron out their differences. The day ahead is set to be full of headlines and rumours as the talks progress, but perhaps the biggest factor will be if President Trump goes ahead with the 25% tariffs he announced at the start of the week, with the deadline being 4pm this afternoon NZ time. It is possible that the deadline could be extended, but Trump has certainly put the heat on China ahead of the talks. Trump stated at a Florida rally yesterday that Beijing “broke the deal” that the US had been negotiating. The risk-off tone to markets is set to continue until there are signs of progress, however various Chinese sources have stated that there is “zero” chance of reaching a deal this week.

US Trade Balance Worsens

U.S data has largely been overshadowed by the trade negotiations taking place. Overnight saw US employment claims advancing to 228,000, slightly worse than market expectations of 220,000, while the US trade deficit has widened to $50b from $49.3b previously, although slightly ahead of market expectations of $50.1b. US CPI numbers for April are released tonight with markets expecting an annual inflation rate of 2.1%.