With economic data on the lighter side, geopolitics will be the key driver on the day.
It was a relatively busy day on the economic calendar through the Asian session this morning.
Key stats included New Zealand’s August trade data that preceded the RBNZ’s September monetary policy decision.
Outside of the stats, the markets responded to updates from the UN General Assembly, which weighed on sentiment towards trade and on tech stocks. U.S President Trump’s negative comments on trade and social media added to the negative risk sentiment this morning.
U.S political risk joined the laundry list of risks the markets need to consider late on Tuesday, which drove demand for U.S Treasuries. The negative sentiment spilled into the early hours as the Democrats call for impeachment talks.
The trade deficit widened from NZ$700m to NZ$1,565m in August, month-on-month. Economists had forecasted a widening to NZ$1,464m.
According to NZ Stats,
The Kiwi Dollar moved from $0.63235 to $0.63238 upon release of the numbers that preceded the RBNZ interest rate decision and rate statement.
The RBNZ held interest rates steady at 1% following last month’s larger than expected 50 basis point rate cut.
While the hold was in line with market expectations, the RBNZ Rate Statement provided direction. Salient points from the Rate Statement included:
The Kiwi Dollar moved from $0.63044 to $0.63455 upon the release of the rate statement. At the time of writing, the Kiwi Dollar was up by 0.35% to $0.6347.
At the time of writing, the Japanese Yen was down by 0.25% to ¥107.34 against the U.S Dollar, while the Aussie Dollar flat at $0.6801.
It’s a quiet day ahead on the economic calendar. There are no stats due out of the Eurozone to provide the EUR with direction.
A lack of stats will leave the market focus on Brexit, U.S – China trade war chatter and updates from the UN General Assembly.
With Iranian President Rouhani scheduled to speak, it could get choppy later in the day.
At the time of writing, the EUR was down by 0.15% to $1.1003.
It’s also a quiet day ahead on the data front. There are no material stats due out of the UK to provide the Pound with direction.
Brexit and British politics continue to be the key driver.
At the time of writing, the Pound was down by 0.12% to $1.2472.
It’s a relatively quiet day ahead on the economic calendar. Key stats are limited to August new home sales figures.
The numbers are unlikely to have a material impact on the Dollar, with geopolitical risk front and center on the day.
The Dollar Spot Index was up by 0.16% to 98.491 at the time of writing.
It’s a quiet day ahead on the economic calendar once more. There are no material stats due out of Canada to provide the Loonie with direction.
The lack of stats will leave the Loonie in the hands of market risk sentiment and the weekly EIA crude oil inventory numbers.
The Loonie was down by 0.07% at C$1.3252, against the U.S Dollar, at the time of writing.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.