The NZDUSD opens at 0.6524 (mid-rate) this morning.
The NZD finds itself sharply lower after yesterdays shock announcement from the Peoples bank of China.
The PBoC devalued Yuan by 1.9% (the most in 20yrs) in an effort to boost its economy through exports.
The bank set the value of Yuan at 6.2298 against the USD in what the bank has called a one-time adjustment (The Yuan is allowed to move within a range of 2 percent from the central parity rate fixed each day).
The overnight U.S. data releases managed to print ahead of economists estimates with the Prelim Unit Labor Costs q/q, Prelim Nonfarm Productivity q/q and the NFIB Small Business Index all helping to boost the USD.
There were mixed reports out of Europe where the news that German investor confidence deteriorated sharply to a nine-month low in August was countered by the news that Greece reached an agreement with its creditors over the terms of the third bailout.
Global equity markets are broadly lower - Dow -1.27%, S&P 500 -1.10%, FTSE -1.06%, DAX -2.68%, CAC -0.26%, Nikkei -0.42%, Shanghai -0.01%.
Gold prices are up $4 to $1108 an ounce, WTI Crude Oil is sharply lower down 4% to $43.19 a barrel.
NZDUSD 0.6524 -1.3%
NZDEUR 0.5915 -1.5%
NZDGBP 0.4191 -1.2%
NZDJPY 81.68 -0.9%
NZDAUD 0.8952 0.3%
NZDCAD 0.8566 -0.5%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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