The NZDUSD opens higher at 0.7890 this morning.
Manufacturing data from China and Europe disappointed yesterday. The NZD & AUD suffered as a result – the NZDUSD fell to a low of 0.7775, while the AUDUSD touched a fresh 4-year low of 0.8420.
The USD subsequently fell as long USD positions were reduced ahead of the European Central Bank’s interest rate policy setting meeting on Thursday evening and the all-important US non-farm payroll employment figures Friday night.
The JPY fell to its weakest level against the USD since July 2007 after debt rating agency Moodys cut Japan’s sovereign rating by one notch due to its fiscal issues.
Fonterra’s the Global Dairy Trade auction results hits the tapes early Wednesday morning.
Global equity markets were mostly lower on the day – Dow -0.2%, Nikkei +0.8%, Shanghai +0.4%, FTSE-1.0%, DAX -0.2%
Gold prices jumped 4.3% to USD$1,168. Oil prices rebounded sharply gaining 3.0% on the day.
The current indicative mid-rates are:
NZDUSD 0.7890
NZDEUR 0.6325
NZDGBP 0.4990
NZDJPY 93.35
NZDAUD 0.9265
NZDCAD 0.8940
ANZ Commodity Prices will be released at 1:00pm.
The Reserve Bank of Australia has an interest rate decision at 4:30pm – rates are widely expected to remain at 2.50%. More interest will be focused on their comments regarding the AUD.
The US Fed’s Yellen & Fischer give separate speeches tonight, and Fonterra’s latest installment of the Global Dairy Trade auction hits the tapes circa 7am tomorrow.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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