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

NZD Weaker on Trump Tariff Talks: Ahead of RBA, RBNZ

Published May 7, 2019

The Kiwi continues its downward slide following President Donald Trump’s recent threats to raise tariffs on 200 billion of Chinese goods to 25% on Friday.

Comments surprised markets as they’ve shifted from Trump’s recent upbeat tones that trade talks were progressing well, with a top US trade negotiator now accusing China of reneging on promises made during negotiations. China hasn’t commented on Trump’s tariff threats and will proceed with scheduled trade negotiations with the US starting on Wednesday in Washington. Commodity currencies and global stocks fell on Trumps announcement casting more doubt on trade talks.

The Euro has held steady with small signs of optimism. Germany’s services PMIs came in slightly better than expected, and an investor confidence survey was very positive, March retail sales also suggest improved growth.

Focus today will be on the RBA rate announcement released at 4.30pm with a 50% chance the RBA could cut rates to 1.25% from 1.5%. A rate cut from the RBA could prompt the RBNZ to follow suit when they meet tomorrow at 2pm which will see interest rates at 1.50% from 1.75%.