The NZDUSD opens at 0.6395 this morning.
The USD weakened Friday night on disappointment the US Federal Reserve did not begin the process of normalising interest rates - the NZDUSD rallied towards 0.6450 as a consequence. However, the USD subsequently rebounded, dragging the NZDUSD back lower in the process.
The US Fed is still expected to raise interest rates this year, possibly as soon as their next meeting on 29th October (NZ time).
The Reserve Bank of Australia Governor said the Australian economy was growing, non-mining activity improving, and the AUD was adjusting to the lower terms of trade.
Greek Prime Minister Alexis Tsipras looks set to return to power after an emphatic election victory. This was despite yielding to the demand of European leaders for more austerity measures.
Global equity markets were mostly sharply lower on the day– Dow -1.7%, Nikkei -2.0%, Shanghai +0.4%, FTSE -1.3%, DAX -3.1%
Gold prices rose to a near 3-week high of USD$1,139 an ounce. Oil prices (WTI) plunged 4.7% to USD$44.68 per barrel.
Consumer Confidence and Visitor Arrival figures will be released this morning. Neither likely to be a market mover.
Indicative mid rates:
NZDUSD 0.6395 0.7%
NZDEUR 0.5673 2.2%
NZDGBP 0.4122 1.3%
NZDJPY 76.85 0.9%
NZDAUD 0.8905 0.7%
NZDCAD 0.8461 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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