The NZDUSD opens at 0.7710 (mid-rate) this morning.
A very volatile night with global markets lacking liquidity, has seen the NZDUSD trade between 0.7610-0.7760 with investors taking profit on their long USD positions.
Fonterra are due to release their 2014/15 payout forecast at 8:30 this morning which will dictate the NZD direction for the rest of the day.
Overnight, U.K. industrial production fell unexpectedly in October Manufacturing output declined 0.7 percent month-on-month in October, which was the largest drop since May 2014 and the first fall in five months.
Ongoing concerns about the global economic outlook coupled with the recent weakness in commodities prices are contributing to the weakness in global equity markets.
Global equity are sharply lower - Dow -0.53%, Nikkei -0.68%, Shanghai -5.43%, FTSE -2.14% DAX -2.21%, CAC -2.55%.
Gold prices are up 2.93% currently trading at $1230 while Oil prices are slightly higher at $63.58
The current indicative mid-rates are:
NZDUSD 0.7710
NZDEUR 0.6220
NZDGBP 0.4917
NZDJPY 92.70
NZDAUD 0.9274
NZDCAD 0.8814
Domestic data releases today:
14:30 – China’s CPI y/y , PPI 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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