The Kiwi Dollar opens the day barely changed as markets traded very narrow ranges due to the Thanksgiving Holiday overnight. Even news of President Trump signing two bills backing Hong Kong Protesters had little impact on markets, despite the move infuriating China and casting further doubts over trade talk progress.
Trade Deal Uncertainty As Trump Backs Protesters
President Trump has signed two bills backing Hong Kong protesters, and stated he “signed these bills out of respect for President Xi, China, and the people of Hong Kong.” Trump signed the bills amidst US-China trade negotiations, and the market has concerns that these bills could set back trade talks. The response from China has been one of anger, and the foreign ministry has commented that the US side “will bear all responsibility for the consequences”.
NZ Business Confidence Improves
The latest ANZ business outlook survey for November showed business confidence indicators rising to their highest level this year. The improvement follows on from some encouraging local data in recent times including retail sales, manufacturing output, and higher dairy prices. The impact on the NZD yesterday was initially positive before falling back to the familiar range of the past week.
The Day Ahead
Nothing major on the local front with some lower level data in the calendar, including Building Permits and the ANZ Consumer Confidence Index this morning. Overseas, we have Canadian GDP for September tonight, while Chinese PMI data released tomorrow afternoon will be closely watched with markets expecting a small increase in both manufacturing and non-manufacturing indices.
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