The Kiwi Dollar drifted lower yesterday on what was a relatively quiet day of market news and events. China’s financial markets are closed all week for the new year holiday, while local markets are closed tomorrow for Waitangi Day.
US Dollar holds gains
The US Dollar made ground against most currencies overnight, extending gains made last week on the back of some upbeat economic data releases. Tonight sees the closely watched US ISM non-manufacturing PMI number which has the potential to move the NZD while we are away. Tomorrow, President Trump is set to deliver his state of the nation speech, with markets hopeful for an update on the progress of new trade talks with China.
AUD Lower Ahead of RBA Statement
The Australian Dollar remains subdued ahead of today’s monetary policy rate announcement with many expecting a less upbeat tone to the accompanying statement. No change in rates is expected today, and Governor Lowe’s speech tomorrow might be of more relevance where he will provide more detail on the policy outlook. Markets will be looking at whether he maintains the “next move is more likely to be an increase than a decrease” view. Any change to this tone could trigger a move in the AUD. Prior to the rate announcement at 4.30pm, we have Australian Retail Sales for December released at 1.30pm NZ time.
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