EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi Dollar took a tumble yesterday, losing close to 1% from yesterday’s opening levels. The main driver for the lower NZD was a sharply weaker Australian Dollar, which ran into a couple of negative pieces of news yesterday afternoon. There was no respite for either the NZD or AUD overnight as the US Dollar was broadly stronger as US-China trade negotiations continued to progress.
AUD Drops Despite Solid Employment Data
The Australian Dollar was the weakest performer of the major currencies yesterday. The Aussie was initially stronger on the back of firm employment numbers which saw 39,000 jobs added to the economy. The rally was short lived as updated forecasts from Westpac Australia suggested two RBA rate cuts before the end of the year. Following on from this was reports that one of China’s ports had banned coal imports from Australia. There has been no official word out of China of a ban, and Australia’s Trade Minister is seeking clarification. The AUD has lost close to 1.5% from yesterdays open, dragging the NZD down with it. The NZD/AUD cross has remained relatively stable.
USD Firm as Trade Negotiations Progress
The Greenback was firm across the board amid suggestions a trade deal with China is taking shape, with reports that China is proposing to buy an additional $30b of US agricultural products each year.
Pound Holds Gains as Brexit Talks Continue
EC President Juncker and British PM May agreed to continue Brexit talks and meet again in February after what they described as constructive talks in Brussels. The Pound has traded a fairly narrow range, holding on to gains made earlier the week.
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