The New Zealand Dollar edged towards 0.6850 intraday however failed to break this level and as the Asian session came to a close the NZD/USD pair began its decent back towards the 68c mark. Local data didn’t have much of an impact with the latest NZIER Business Confidence survey for Q4 of 2018 reporting that NZ businesses remain downbeat about the economy. A net 18% of businesses expected general economic conditions to worsen over coming months – an improvement from the net 28% that had a negative view in the previous quarter. Meanwhile, Food Price Index fell 0.2 percent in December compared with November and seeing a 1.0 percent increase in the year. The food price index accounts for about 19 per cent of the consumers price index, which is the Reserve Bank's mandated inflation target when setting interest rates.
Overnight we also saw the bi-weekly GDT auction, the index rose 4.2 percent from the previous auction with the average price coming in at US3,057 a tonne. Whole milk powder, skimmed milk powder, lactose, butter, cheddar and anhydrous milk fat all climbed, bucking the trend was rennet casein with fell 1.4 percent.
There are no scheduled macroeconomic releases today. the main focus remains in the UK where British Prime Minister Theresa may has been defeated by a record margin of 230 MPs over the Brexit Withdrawal Agreement. The historic defeat throws the Government - and its plans for Brexit into crisis.