The NZDUSD opens at 0.8455 this morning.
The Reserve Bank of Australia cut their cash rate by 0.25% to 2.75% yesterday and left room for further cuts.
This ignited a sharp sell off in the AUDUSD which dragged the NZDUSD along for the ride. The NZDUSD fell as low as 0.8430, while the NZDAUD spiked to a 0.8339 – a 3 ½ year high.
Data out of the euro-zone was mixed – strong German data, solid sale of Portuguese bonds, while French industrial production fell 0.9% on the month.
Global equity markets hit their highest levels in almost 5 years. The German Dax, US Dow Jones and S&P500 indices reached all-time highs on expectations of sustained central bank stimulus.
The Gold price dropped 1.2% to USD$1452 an ounce, while Oil and base metal prices were generally weaker.
The NZD opens at 0.8455 USD, 0.8300 AUD, 0.6465 EUR, 0.5460 GBP, & 83.70 JPY.
The RBNZ Financial Stability Report is about to be released.
Chinese Trade Balance will be released this afternoon, and NZ and Australian employment number hit the tapes Thursday.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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