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NZDUSD Holds .6900 as Markets Remain Optimistic on China Trade Talks

Published February 1, 2019

The USD remains under pressure today following yesterday’s Federal Reserve “patience” stance on raising interest rates. Stock prices rose on the Fed announcement and saw the Kiwi Dollar rally by over 1%, reaching a new high for the year. Also adding to NZD strength was news that credit rating agency S&P upgraded New Zealand’s outlook from stable to positive yesterday afternoon.

Trump wants “big trade” deal with China or will postpone it

On the trade war front, President Trump will meet China’s Vice Premier Liu He today as the high-level trade negotiations come to an end with little sign that China will bend to American demands. The US has threatened to more than double tariffs on Chinese imports on 2nd March if no deal is reached. Markets will look to concluding statements by the White House for progress on core subjects such as intellectual property rights.

Key U.S Data Tonight

US economic data is starting to be released after the government shutdown. Tonight sees a couple of key announcements including non-farm payrolls and ISM manufacturing numbers for January. Both will be keenly watched as the market looks for further evidence as to the health of the US economy and whether the Fed is justified in slowing down planned interest rate hikes.