The NZDUSD opens at 0.7949 this morning.
The NZD/USD has traded to a high of 0.7990 on a combination of USD weakness following last night’s poor US Retail Sales and PPI data releases and an unexpected rise in Fonterra’s GDT Price Index (+1.4%).
Retail sales in the U.S. fell by more than anticipated in the month of September (-0.3% vs. -0.1%), the US PPI also disappointed printing -0.1vs expectations of +0.1. On the back of these releases and the continuing worry surrounding global growth US and European Equity markets have been pummelled.
The German Ministry of Economic Affairs slashed its forecast of growth this year to 1.2 percent, a significant downward revision from the 1.8 percent growth expected earlier in the year. Growth for 2015 was also revised down to 1.3 percent from 2 percent.
Asian markets closed higher before yesterday’s European and US data releases - Nikkei +0.92%, Shanghai +0.60%, FTSE -1.68% DAX -2.16%, CAC-3.63, Dow -1.85%
Gold Prices are up on the back of risk trading at $1241 (+$8.70) Oil prices continue to fall trading down 0.61% to $81.25 a barrel
The current indicative mid-rates are:
NZDUSD 0.7949
NZDEUR 0.6216
NZDGBP 0.4998
NZDJPY 84.23
NZDAUD 0.9087
NZDCAD 0.8991
Domestic data releases today: 10:30am Business NZ Manufacturing Index
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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