The NZDUSD opens at 0.6295 (mid-rate) this morning.
The RBNZ yesterday morning cut the Official Cash Rate (OCR) by 0.25% to 2.75% as expected, and stated some further easing is possible.
The NZ economy is growing at a 2% annual rate, and they see further weakness in the global economy.
After reporting a bigger than expected increase in first-time claims for U.S. unemployment benefits last week, the US Labour Department released a report overnight showing that U.S. initial jobless claims had fallen 275k in line with estimates in the week ended September 6th.
Wholesale inventories in the U.S. unexpectedly saw a modest decrease in the month of July, down 0.1%, and following a downwardly revised 0.7% increase in June.
French industrial production fell 0.8% in July from June, when it remained flat. It was expected to grow 0.2%. France's non-farm payroll employment rose 0.2% quarter-on-quarter in the second quarter, after showing no variations in the preceding quarter.
The Bank of England kept its record low interest rate unchanged in a split vote and judged it premature to conclude that overseas events, especially those in China, had a huge adverse impact on the British economy.
Policymakers also unanimously voted to retain quantitative easing programme at GBP 375 billion.
UK House prices spiked 53% in August. That topped forecasts for an increase of 46% and was up sharply from 44% in July.
Global equity markets are down with the exception of the US which is up: Dow +0.28%, S&P 500 +0.35%, FTSE -1.18%, DAX -0.90%, CAC -1.23%, Nikkei -2.51%, Shanghai -1.41%.
Gold prices are trading at $1110 an ounce, WTI Crude Oil has regained 3.48% to be trading at $45.64 a barrel.
Indicative mid rates:
NZDUSD 0.6295 -1.6%
NZDEUR 0.5578 3.0%
NZDGBP 0.4075 -2.7%
NZDJPY 75.88 -1.1%
NZDAUD 0.8905 -2.3%
NZDCAD 0.8332 -1.2%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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