The NZDUSD opens at 0.6310 (mid-rate) this morning.
All eyes this week will be firmly focused on Friday’s FOMC, we open up this morning with only a 28% chance of a rate hike priced in, so should the Fed surprise the market and pull the trigger we would expect to see a sharp spike in the USD.
Over the weekend the U.S data releases again fell short of economists estimates with the Michigan consumer sentiment index falling to 85.7 in September from the final August reading of 91.9.
China’s data was mixed with their retail sales exceeding expectations printing 10.8% vs. exp 10.6% while their industrial production printed a disappointing 6.15 vs. Exp 6.3%.
Locally Wednesday’s GDT price index and Thursday’s Q2 GDP release should provide direction for the NZD ahead of Friday’s FOMC.
Global equity markets finished the week broadly lower - Dow -0.03%, S&P 500 +0.45%, FTSE -0.62%, DAX -0.85%, CAC -0.85%, Nikkei -0.19%, Shanghai -0.07%.
Gold prices were down $9 on Friday closing out the week down 1.6% at $1,101 an ounce, WTI Crude Oil fell back below $45 on Friday having shed 3.1% over the course of the week.
Indicative mid rates:
NZDUSD 0.6310 0.2%
NZDEUR 0.5568 -0.2%
NZDGBP 0.4094 0.5%
NZDJPY 76.10 0.3%
NZDAUD 0.8915 0.1%
NZDCAD 0.8375 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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