The NZDUSD opens lower at 0.8755 this morning.
The USD fell to a 6-week low against a basket of currencies, while the NZD's recent ascent seems to have stalled, for the moment at least.
The positive NZD sentiment was dented a little after yesterday's NZ Business Confidence numbers slide, while a Treasury report suggested NZ terms of trade peaked in Q1.
The EUR rose to a 3-week high against the USD after headline Eurozone inflation figures suggested signs of stabilisation in disinflationary pressures.
The Reserve Bank of Australia has an interest rate meeting today - rates are expected to remain at 2.50%. The RBA may attempt to talk down the AUD.
Main data focus for this week will be on Friday morning's US non-farm payroll employment figures. Strong numbers are needed to counteract last week's disappointing US Q1 GDP figures and to maintain the positive economic momentum.
Global equity markets were mixed on the day - Dow -0.2%, Nikkei +0.4%, Shanghai +0.7%, FTSE -0.2%, DAX +0.2%
Gold prices gained 0.8% to USD$1,325. Oil prices dipped -0.8%.
The current indicative mid-rates are:
NZDUSD 0.8755
NZDEUR 0.6395
NZDGBP 0.5115
NZDJPY 88.70
NZDAUD 0.9285
NZDCAD 0.9345
There is nothing on the domestic data schedule today.
Chinese Manufacturing Data (official & HSBC) and the Reserve Bank of Australia interest rate announcement hit the tapes this afternoon.
----------------------------------------------------------
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
----------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.