The NZDUSD opens markedly lower at 0.7255 this morning, having touched a low of 0.7235 overnight – a level last seen in March 2011.
The NZD plunged across the board yesterday after the Reserve Bank of NZ raised the possibility of interest rate cuts.
The RBNZ previously had a tightening bias and they mentioned the next move in rates, up or down, will be dependent on economic data.
The NZDUSD came under further selling pressure overnight after new US weekly unemployment claims fell to their lowest level in almost 15 years. This sparked board-based US strength which dragged the NZDUSD and most commodity prices lower.
Global equity markets were mixed on the day – Dow +0.8%, Nikkei -1.1%, Shanghai -1.2%, FTSE-0.2%, DAX +0.3%
Gold prices tumbled over 1.5% to USD$1,256. Oil prices rose to USD$48.88.
The current indicative mid-rates are:
NZDUSD 0.7255
NZDEUR 0.6410
NZDGBP 0.4820
NZDJPY 85.85
NZDAUD 0.9355
NZDCAD 0.9150
ANZ Building Consent & Visitor Arrivals figures will be released at 10:45am.
US GDP numbers will be released overnight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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