Global equity markets and risk-linked currencies have slipped lower overnight with concerns about the global economic outlook following the release of disappointing Chinese trade data the main driver.
Yesterday afternoon China's General Administration of Customs latest trade data report showed exports plummeted 4.4% y/y in December. The news came as a shock to economists who had predicted exports to increase by 3.0% and represents the largest fall in exports in two years. Chinese imports were also unexpectedly negative tumbling by 7.6% in December y/y confounding economists who had forecast imports to increase by 5.0%.
Overnight UK Prime Minister Theresa May attempted to sway voters by pointing out that should lawmakers vote down tomorrows Brexit deal it could cause a "paralysis in parliament that risks there being no Brexit." May went on to state "the only deal on the table is the one MPs will vote on tomorrow night," and that the voters “can take no deal off the table by voting for that deal. If no deal is as bad as you believe it is, it will be the height of recklessness to do anything else." The crucial vote is expected to take place at 08:00am tomorrow morning.
The key driver for the NZD during our trading day will be this morning’s NZIER Business Confidence report due to be released at 10:00am.
Global equity markets are largely negative, Dow -0.37%, S&P 500 -0.48%, FTSE -0.91%, DAX -0.29%, CAC -0.39%, Nikkei +0.97%, Shanghai -0.71%.
Gold prices are little changed trading at $1,290 an ounce. WTI Crude Oil prices have edged lower, down 0.6% trading at $51.62 a barrel.
Current indicative rates:
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