The NZDUSD opens at 0.7834 this morning.
The NZD$ has shaken off yesterday’s poor confidence numbers which saw the NZDUSD rate fall back below 0.7800 and opens this morning slightly higher at 0.7834.
Overnight the IMF cut its global economic growth forecasts for 2015 from 4% to 3.8% and the Euro-zone growth forecast from 1.55 to 1.3%. German industrial production fell 4% (-1.5% expected) putting more pressure on the ECB to add to their current stimulus.
Global equity markets are sharply lower - Dow -0.92%, Nikkei -0.67%, Shanghai Closed, FTSE -1.04% DAX -1.34%, CAC -1.81%
Gold prices are higher on safe-haven appeal up $4 to $1210 Oil prices have fallen 1.7% to $88.81 a barrel.
The current indicative mid-rates are:
NZDUSD 0.7834
NZDEUR 0.6193
NZDGBP 0.4868
NZDJPY 84.70
NZDAUD 0.8890
NZDCAD 0.8755
There are no domestic data releases today. Overnight we have the FOMC
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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1 Comments
German industrial production fell 4% (-1.5% expected) putting more pressure on the ECB to add to their current stimulus.
Unfortunately, the BUBA pushed back.
"The concept of an independent central bank clearly focused on price stability is neither old-fashioned nor outdated," exclaimed Bundesbank head Jens Weidmann. As The WSJ reports, he criticized the European Central Bank’s decision to buy private-sector bonds and signaled his fierce opposition to purchasing government bonds, underscoring his reluctance to back additional stimulus measures to combat weakness in the eurozone economy. "There is a risk of monetary policy, especially in the euro area, being held hostage by politics," Mr. Weidmann said Read more
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