Dollar Defensive on Mixed Headlines
The US Dollar traded sideways on Wednesday after troubling headlines hit the wires. US Democrats have launched a formal impeachment inquiry against President Donald Trump following reports that Trump sought Ukrainian President’s help to discredit Democratic presidential front-runner Joe Biden. House Speaker Nancy Pelosi announced the House would initiate a formal inquiry, saying Trump appeared to have undermined national security and violated the U.S. Constitution.
On the trade front, Trump lambasted China’s trade practices despite fresh Chinese buying of US agricultural goods, adding to the damp mood. He said he would not accept a “bad deal” in U.S.-China trade negotiations. The US is also preparing the tariffs against the EU. These major headlines weighed on the markets and pushed safe-havens higher. The US dollar was also pressured after the US consumer confidence fell far more than expected for the month of September.
Earlier, the Reserve Bank of New Zealand left its interest rate unchanged at 1% as expected – but kept the door open to further easing. Kiwi remained stable.
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