The NZDUSD opens lower at 0.7768 (mid-rate) this morning.
The NZDUSD opens lower this morning following China’s disappointing Manufacturing PMI data release. The market had been expecting an unchanged 51.1 and both the NZD and AUD have gapped lower after the data release printed 50.8 leaving China on track for its slowest GDP since 1990.
The USD spiked to its highest level in four years versus a basket of major rivals Friday, after the Bank of Japan's surprising increase in economic stimulus gave global stocks a boost. Markets now expect similar measures from the European Central Bank.
Euro-zone inflation printed slightly higher in October at 0.4%, (September 0.3%) but still finds itself consistently below 1 percent, signifying the risk of deflation.
Equity markets finished the week sharply higher - Dow +1.13%, Nikkei +4.83%, Shanghai +1.22%, FTSE +1.28%, DAX +2.33%, CAC +2.22%.
Gold prices, finished the week at 4-year lows ($1173) having plummeted 5.3% over the past 5 days. Oil prices were also lower closing out the week at $80.70 a barrel.
The current indicative mid-rates are:
NZDUSD 0.7768
NZDEUR 0.6207
NZDGBP 0.4865
NZDJPY 87.51
NZDAUD 0.8885
NZDCAD 0.8772
There are no domestic data releases today
2:45 - CNY HSBC Final Manufacturing PMI
---------------------------------------------------------
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.