As risk aversion rises ahead of Friday's US inflation data, the NZD/USD exchange rate barely changes.
As the US government standoff reaches its 24th day—the second-longest funding delay in history—the US dollar may suffer.
Because of optimism about a possible trade deal between the US and China, the New Zealand dollar is still strong.
The NZD/USD pair advances marginally after recording gains in the previous session, closing at 0.5750 in early European hours on Friday. As the US Dollar (USD) continues to rise on increased risk aversion ahead of the US Consumer Price Index (CPI) data for September, which is set later in the North American session, the pair may fall due to the ongoing government shutdown and the resulting data blackout.
However, as the protracted US government shutdown postpones the release of important US economic statistics, such as Nonfarm Payrolls (NFP), the US dollar can suffer, creating uncertainty for the Fed and financial markets. With no end in sight, the US government shutdown has now entered its 24th day, making it the second-longest federal funding shortfall in history. On Wednesday night, the GOP-backed stopgap bill was defeated in the Senate for the twelfth time.
As optimism surrounding the possible US-China trade deal supports the New Zealand Dollar (NZD), the NZD/USD pair stays stable. Given the strong commercial relations between China and New Zealand, it is crucial to remember that any change in China's economic circumstances could have an impact on the Kiwi Dollar.
During their meeting in South Korea next week, US President Donald Trump stated on Wednesday that he hopes to reach a number of agreements with Chinese President Xi Jinping. According to Reuters, the White House has announced that President Donald Trump will meet with Chinese leader Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea on October 30.
As the US government standoff reaches its 24th day—the second-longest funding delay in history—the US dollar may suffer.
Because of optimism about a possible trade deal between the US and China, the New Zealand dollar is still strong.
The NZD/USD pair advances marginally after recording gains in the previous session, closing at 0.5750 in early European hours on Friday. As the US Dollar (USD) continues to rise on increased risk aversion ahead of the US Consumer Price Index (CPI) data for September, which is set later in the North American session, the pair may fall due to the ongoing government shutdown and the resulting data blackout.
However, as the protracted US government shutdown postpones the release of important US economic statistics, such as Nonfarm Payrolls (NFP), the US dollar can suffer, creating uncertainty for the Fed and financial markets. With no end in sight, the US government shutdown has now entered its 24th day, making it the second-longest federal funding shortfall in history. On Wednesday night, the GOP-backed stopgap bill was defeated in the Senate for the twelfth time.
As optimism surrounding the possible US-China trade deal supports the New Zealand Dollar (NZD), the NZD/USD pair stays stable. Given the strong commercial relations between China and New Zealand, it is crucial to remember that any change in China's economic circumstances could have an impact on the Kiwi Dollar.
During their meeting in South Korea next week, US President Donald Trump stated on Wednesday that he hopes to reach a number of agreements with Chinese President Xi Jinping. According to Reuters, the White House has announced that President Donald Trump will meet with Chinese leader Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea on October 30.
