The NZDUSD opens at 0.7761 (mid-rate) this morning.
The NZDUSD opens this morning back below 0.7800.
The continuing decline in commodity prices has seen the NZD drift lower against all of its major trading partners with the JPY and AUD being the only exceptions. This week’s FOMC should determine the direction for NZDUSD going into year end.
Consumer sentiment in the U.S. printed much stronger than expected for the month of December, the preliminary reading on the consumer sentiment index came in at 93.8 (expected 89.5) compared to the final November reading of 88.8.
The weekend saw further calls for the ECB to offer full-scale quantitative easing after French statistics agency INSEE said core inflation fell 0.2 percent in November from a year earlier (It’s the first time it has turned negative since modern data began).
European and US equity markets are sharply lower- Dow -1.79%, Nikkei +0.66%, Shanghai +0.42%, FTSE -2.49% DAX -2.72%, CAC -2.77%.
Gold prices are slightly lower at $1222, Oil prices continue to fall closing the week out at $57.75 (a new 5yr low).
The current indicative mid-rates are:
NZDUSD 0.7761
NZDEUR 0.6225
NZDGBP 0.4935
NZDJPY 94.25
NZDAUD 0.9427
NZDCAD 0.9001
There are no domestic data releases today
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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