The New Zealand Dollar was whittled lower despite very little activity on global foreign exchange markets as the risk off tone subsided slightly ahead of the resumption of US-China trade talks. Within this context the Greenback gained a little ground across the board which saw the Kiwi weaken slightly to open this morning at 0.6734.
With little on the economic calendar to digest, focus shifted to the political sphere with attentions fixed on the on-going trade negotiations. Sentiment was initially dampened after President Trump noted he would not be meeting President Xi before the March 1st deadline. Nevertheless, reports overnight mentioned that Trade Representative Lighthizer and Treasury Secretary Mnuchin will meet Chinese Vice Premier Liu in Beijing to hopefully make progress on the deal before March 1st.
Adding to market optimism were reports that both presidents will likely speak on the phone before the March deadline. Overall, the Greenback strengthened on the news, as did the Kiwi, which has outperformed most of the G10 currencies. Nevertheless, against the USD, the NZD finds itself slightly lower.
Moving into Tuesday the New Zealand Dollar again has little to look forward to on the domestic calendar ahead of an action packed RBNZ Wednesday. Today, direction will again be driven by offshore forces.