The NZDUSD opens at 0.8770 this morning.
The USD dollar index rallied following Yellen's testimony, where she stated "If the labour market continues to improve more quickly than anticipated by the Committee, resulting in faster convergence toward our dual objectives, then increases in the federal funds rate target likely would occur sooner and be more rapid than currently envisioned."
The NZD came under further pressure as once again the Fonterra's Global Dairy Trade auction concluded with the GDT Price Index plunging another 8.9%. Prices have now fallen in 10 of the last 11 auctions, with the cumulative decline from the early-February peak now standing at 35%.
Elsewhere, the GBP was the sole outperformer against the greenback in G10 FX, thanks to a higher CPI print for the UK economy
Global equity markets were mixed on the day - Dow -0.01%, Nikkei +0.64%, Shanghai +0.18%, FTSE-0.53%,
Gold prices fell by 1% now trading below $1300 ($1293.7)
The current indicative mid-rates are:
NZDUSD 0.8771
NZDEUR 0.6465
NZDGBP 0.5117
NZDJPY 89.21
NZDAUD 0.9355
NZDCAD 0.9438
Today at 10:45 we have NZ Q2 CPI and at 2:00pm China?s GDP q/y and Industrial Production y/y
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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