Losses for the kiwi continue this morning and we see the NZDUSD currently trading at 0.6990 after hitting session lows of 0.6971 earlier today. The sell-off enters its 3rd consecutive day as uncertainity over the new government and the expected changes with regards to monetary policy pressured the NZD.
The USD appears to be still stuck in a tight range as markets still await Trump’s choice for the next Fed Chair. This morning the buck seems to be recovering some of the losses seen yesterday. News that Senate had made some steps towards eventually passing the proposed tax reform helped the USD.
The mood was pre-dominantly positive earlier today in Asia as the major equity indices in Asia headed higher. However gains remained very much in check and the Japanese Nikkei was tending mostly lower as Japan is expected to go to the polls next Sunday.
The highlights if today’s economic calendar seem to mostly be the German Producer Prices, UK Public Finances numbers, CAD CPI due this afternoon, and US existing home sales.
