EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi has dipped against the USD ahead of trade negotiations between the US and China later today and the RBNZ rate announcement tomorrow afternoon.
China upbeat as trade talks resume
China hit an upbeat note ahead of today’s trade talks, but also expressed anger at a US Navy mission through the disputed South China Sea, clouding the prospect for improved China-US ties. Top US and China officials are meeting today in an effort to negotiate a trade agreement before the March 1st deadline that could see tariffs on $200 billion worth of Chinese goods increase to 25% from 10%.
GBP lower on Growth Slowdown and Brexit uncertainty
UK data released overnight showed the British economy grow at its slowest pace in 7 years. GDP for the full year was at 1.3% vs expectations of 1.4%, and 0.2% between October and December from 0.6% in the previous quarter. Brexit uncertainties also weighed on the Pound with only 6 weeks to go before the March 29 deadline.
Fresh talks aim to avert US shutdown
A collapse in border protection talks between US Democrats and Republicans heightened fears of another government shutdown. Key sticking points in talks are over border barriers and making detention facilities able to hold more immigrants to be deported. An agreement needs to be reached by Friday to avoid another partial government shutdown.
The RBNZ monetary policy statement with Governor Adrian Orr tomorrow at 2pm will be the next key local data to watch, with expectations for the official cash rate to remain at the record low 1.75%. Focus will instead be on the tone set by Governor Orr and whether the RBNZ will look to ease.
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