The Opening Bell: Where currencies start on Thursday, July 16, 2015

By Dan Bell

The NZD/USD opens up the morning at .6595.

The NZD has posted fresh lows following the mornings Global Dairy Auction as the data shows a 10.7% slump in dairy prices.

This is now the ninth consecutive decline and to make matters worse, it was also the biggest decline since April as it now sits at 2003 lows.

The US was treated to a night of positivity as PPI, Industrial Production and the Manufacturing Index all came in stronger than expected.

This was also met by the Fed Chair Yellen testifying that a rate hike is still likely in 2015 as the labor market and economy look good and are likely to make further improvements and unemployment is likely to decline gradually.

The Greek Parliament are currently evaluating the bailout terms and are likely to have an agreement in place sometime this morning.

The IMF have been quoted saying that Greece’s debt can now only be sustained through debt relief that goes far beyond what was first thought.

The UK has posted its jobless claims as a negative number at 7,000 and its average earnings are lower by 3.2%.

NZDUSD           0.5484      -1.7%
NZDEUR           0.6020      -1.1%
NZDGBP           0.4217      -1.6%
NZDJPY             81.60       -1.0%
NZDAUD           0.8938       -0.5%

World equity markets are a mixed bag this morning with the following: Dow  0.0%, S&P 500 -0.1%, FTSE 0.0%, DAX +0.2%, CAC +1.3%, Nikkei +.04%, Shanghai -3.0%

Upcoming Data releases: 

• NZ – CPI -10:45              

• AUD – Inflation -13:00                

• EUR – Final CPI y/y -21:00                

• EUR – Interest Rate -23:45               

• USD – Unemployment Claims -00:30               

• USD – Fed Chair Yellen Testifies -02:00                

• USD – Philly  Fed Manufacturing Index -02:00

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 »