Kiwi marginally higher after US delays imposition of Tariffs
Wednesday 14 August, 2019
Daily Currency UpdateNZD - New Zealand DollarThe New Zealand Dollar continued to trade on the low end of its range overnight, hitting as low as 0.6422 before enjoying a slight boost from the United States. Opening this morning at 0.6456, the Kiwi drew momentum from broad global issues last night amidst a quiet domestic calendar. It was again Trade and Hong Kong that drove global markets as Trump kicked off the American session with somewhat of a compromise, delaying the imposition of the 10% tariffs until mid-December. Markets reacted almost immediately with the Kiwi outperforming many of the majors on any sign that a thawing of trade hostilities may be on the table. Nevertheless, Trump also noted that China has shifted troops to the Hong Kong border which dampened the positivity. Moving into Wednesday, the Kiwi is again set to take its cues from the broader global economy with little on the local calendar to drive direction.
Key MoversOvernight, the US Trade Representative announced that they would delay the 10% tariffs on some consumer goods until mid-December. President Trump added that this was aimed to coincide with the Christmas Season and in effect, shielded consumers from higher prices on consumer goods for this coming Christmas. Adding to the positivity in global markets were reports that discussions between US Representative Lighthizer and Chinese Vice Premier Liu had resumed after they initially faltered which raises the chance of negotiators meeting in the US in September. The announcement had an almost immediate effect with Safe Haven currencies, the Japanese Yen and Swiss Franc, bearing the brunt of the shift in risk sentiment with the Yen falling 1.3% and the Franc falling 0.7%. On the other side of the coin, the Chinese Renminbi rose 1.25% and the Aussie rose 0.65%, supporting by improved risk appetites.
- NZD/AUD: 0.9466 - 0.9549 ▼
- NZD/CAD: 0.8501 - 0.8579 ▼
- NZD/EUR: 0.5739 - 0.5819 ▼
- GBP/NZD: 1.8624 - 1.8702 ▼
- NZD/USD: 0.6408 - 0.6497 ▼