CORS issue with Vuejs SPA + Nodejs API

I have a setup as the title, with cors npm installed in my nodejs express app. Also, there is a basic authentication enabled on the nginx which is hosting my nodejs app. (The authentication simply requires a 'Authorization' key attached to the headers of of each request).

My nodejs entry file (with cors):

var express = require('express');
var bodyParser = require('body-parser');
var morgan = require('morgan');
var routes = require('./routes');
var cors = require('cors');

var app = express();
var port = process.env.PORT || 3000

app.set('view engine', 'ejs');

app.use('/assets', express.static('./public'))
app.use(bodyParser.json({limit: '50mb'}));
app.use(morgan('dev'));
app.use(cors({
    origin: 'http://localhost:8080',
    credentials: true,
    allowedHeaders: ['Content-Type', 'Authorization']
}));
app.options('*', cors());
routes.init(app);

app.listen(port, function() {
    console.log(`Express running on ${port}`)
})

My vuejs main.js file with vue-resource set up to deal with API calls:

import Vue from 'vue'
import App from './App'
import router from './router'
import VueResource from 'vue-resource'

Vue.config.productionTip = false

Vue.use(VueResource)

if(process.env.NODE_ENV === 'production') {
    Vue.http.options.root = 'http://api.server.net'
    Vue.http.interceptors.push((request, next) => {
        request.headers.set('Authorization', 'Basic xxxxx')
        next()
    })
}

new Vue({
    el: '#app',
    router,
    components: { App },
    template: '<App/>'
})

With the above in place, I'm getting this error "Response to preflight request doesn't pass access control check: No 'Access-Control-Allow-Origin' header is present on the requested resource."

A few more observations:

-Calling the API with postman and attaching the authorization key to the request header works. (Understand that postman is not affected by the CORS issue, but just to demonstrate that authorization key works). In postman, however, the response header DOES NOT have ACCESS-CONTROL-ALLOW-ORIGIN key. Same is true when I checked the response header in chrome devtools.

-With chrome dev tools, I noticed also that the request header DOES NOT have the authorization key in it.

Could someone point me to the right direction?

Edit: formatting