The New Zealand dollar holds above .6800 after the RBNZ announcement earlier in the week and on much weaker than expected US retail sales
US Retails Sales Plunge to 9-year Low
US Retail Sales released overnight posted its biggest fall in more than 9 years, suggesting a sharp slowdown in the world’s biggest economy. Retail sales fell 1.2% in December vs forecasts of 0.2%, raising concerns the economy may be slowing more than expected and saw the USD fall on the announcement.
Risk Appetite Returns on Better Than Expected Chinese Trade Data
Chinese trade data released with stronger export figures. This is the lunar new year effect with China’s exports rising 9.1%. Additionally, China’s imports fell 1.5% vs expectations of a 10% y/y decline in January with an overall trade surplus of $39.16 billion in January. Risk on sentiment returned to markets supporting the NZD and AUD.
UK PM May’s Brexit Strategy Defeated
Parliament defeated a vote reaffirming support for Mays plan to seek changes to her Brexit deal, showing that lawmakers are a key obstacle to passing any agreement with only 42 days remaining before Britain is due to leave the EU. The pound fell 1% as fears of a no-deal exit increase.
Chinese Inflation released today at 2:30
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