The Kiwi Dollar has lost further ground, falling to its lowest level since September 2015. There has been no obvious trigger for the renewed selling which began during Asian trading yesterday afternoon, however further losses have been avoided with the currency stabilizing overnight. Elsewhere, U.S – China trade took a back seat overnight as news out of the UK grabbed the headlines, with PM Boris Johnson surprising everyone and asking the Queen to suspend parliament in the lead up to the Brexit deadline.
Johnson Looks to Suspend UK Parliament
The British Pound was the worst performing major currency overnight dropping by over 1% as Prime Minister Boris Johnson asked the Queen to suspend Parliament from mid-September to mid-October. This would severely hinder efforts by anti-Brexit lawmakers to block a no-deal exit from the European Union. The GBP was sold on growing fears that MP’s would find it harder to prevent a no-deal Brexit, and increased the chances that opposition MP’s would move closer to a vote of no confidence in the government.
USD Broadly Higher
Markets got official confirmation that higher tariffs on Chinese goods are to be imposed by the U.S on October 1st. The Dollar was broadly firmer despite ongoing concerns over the U.S economy and the impact these tariffs will have. Tonight we have Q2 U.S GDP figures released, along with Advance Goods Trade Balance numbers for July.
On the local front we have the latest ANZ Business Confidence survey results released this morning, with not much improvement being expected since the RBNZ surprise 0.50% rate cut.
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