Greenback Higher as Optimism Fades
The US Dollar was higher during Friday morning trade in Tokyo on new signs that the global economy is slowing even further. The risk-averse sentiment was further whetted by the lack of progress in the long-held trade rift between China and the US. Insiders from both administrations have said that there is little chance that an agreement can be reached before December 15th when the new mutual tariffs take effect. Though a spokesperson for the White House challenged the insider comments, analysts say that the Trump administration's inability to provide credible details on the negotiations is simply bad news.
The USD/JPY was trading higher at 108.5940 Yen, a gain of 0.1790%, off the earlier peak of 108.531 Yen. The USD/CHF was trading at 0.9888 Swiss Francs, up 0.0941%, sliding from the session high of 0.98912 Swiss Francs.
Aussie and Kiwi Dollars Gain Momentum
The Australian Dollar managed to recover some of its earlier losses which occurred after the release on Thursday of disappointing labor data. The AUD/USD was trading higher at $0.6795, up 0.1164%; the pair has ranged from a low of $0.67826 to a peak of $0.67995. In New Zealand, the Reserve Bank Governor, Adrian Orr, said in a speech to San Francisco bankers that the RBNZ would consider more unconventional tools when considering monetary policy. While that had had little impact on the Kiwi Dollar, the Business NZ PMI helped to improve sentiment for the currency with a reading of 52.6 against an expected 48.4. The NZD/USD was trading higher at $0.6392, slipping from a session high of $0.63942.