The NZDUSD opens higher at 0.8775 this morning.
Global dairy prices fell 4.9%, while volume surged 29.8% higher compared with the previous sale, at Fonterra's latest auction held overnight. Prices in NZD have fallen 34% year-on-year. The NZD was little moved in response.
The AUD jumped to a 7 1/2 month high after the Reserve Bank of Australia was more upbeat on the economy than expected. The RBA reiterated the AUD was high by historic standards, but that interest rates were lower enough to support the economy in the face of a marked slowdown in mining investment. The RBA made no new attempt to talk down the AUD.
The EUR fell from a 6-week high on concerns the European Central Bank may follow through with specific easing actions at Thursday evening policy meeting.
The GBPUSD traded to a 5 3/4 year high as UK manufacturing survey indicated the sector grew at its fastest pace in 7 months. This is added to view the Bank of England may raise interest rates this year.
Global equity markets were mostly higher on the day - Dow +0.9%, Nikkei +1.1%, Shanghai -0.0%, FTSE +0.9%, DAX +0.7%
Gold prices rose marginally to USD$1326. Oil prices dipped -0.1%.
The current indicative mid-rates are:
NZDUSD 0.8775
NZDEUR 0.6415
NZDGBP 0.5115
NZDJPY 89.10
NZDAUD 0.9245
NZDCAD 0.9335
The ANZ Commodity Prices will be released at 1:00pm.
Australian Trade Balance hits the tapes at 1:30pm, followed by a speech by Fed Chair Yellen overnight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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