The NZDUSD opens at 0.6394 (mid-rate) this morning.
On the back of further gains in the Asian equity markets (SSE +2.32% Nikki +7.71%) market sentiment has continued to improve and the NZD has managed consolidate yesterday’s gains ahead of this morning’s cash rate announcement.
With a 25 basis point cut fully expected, and priced in, investors will be focused on the tone (dovish/hawkish) of the accompanying press conference for further guidance.
The rising GBP stalled overnight after their Manufacturing Production m/m fell short of economists estimates printing -0.8% vs. +0.2 and the Trade balance widened from -9.5B to -11.1B.
Global equity markets remain mixed - Dow -1.45%, S&P 500 -1.39%, FTSE +1.35%, DAX +0.31%, CAC +0.23%, Nikkei +7.71%, Shanghai +2.29%.
Gold prices have fallen 1.3% currently trading at $1122 an ounce, WTI Crude Oil has lost 3.85% over the past 24hrs currently trading at $44.05 a barrel.
Indicative mid rates:
NZDUSD 0.6394 0.7%
NZDEUR 0.5709 0.7%
NZDGBP 0.4159 0.8%
NZDJPY 77.10 1.2%
NZDAUD 0.9112 0.9%
NZDCAD 0.8465 0.9%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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