The NZDUSD opens higher at 0.6354 this morning.Investors are eagerly awaiting Federal Reserve Chair Janet Yellen's speech this morning, at a University of Massachusetts event.
Traders are hoping for additional clarity as to when the U.S. central bank plans to raise interest rates.
Following the data drought earlier this week, U.S. economic data was largely positive overnight.
Weekly jobless claims increased less than anticipated, new home sales growth exceeded expectations and durable goods orders were in line with expectations. Despite this the NZD gained 1.8% from yesterday’s open.
US initial jobless claims, a measure of the number of first-time unemployment filings, came in at 267,000 for the week ended September 19.
U.S. new home sales continued to surge in August, as buyers took advantage of low interest rates and better employment. New home sales rose 5.7% at an annual rate of 552,000 in August. US Durable goods orders fell 2% in August.
Investors can look forward to US GDP and consumer sentiment on overnight.
German Business confidence improved unexpectedly in September rising to 108.5 in September from 108.3 in August. It was forecast to fall to 107.9. French business confidence reached its highest level in more than four years in September.
U.K. mortgage approvals rose to its highest level since early 2014 in August.
Global equity markets were down overnight with the exception of Shanghai – Dow -0.48%, S&P -0.34%, Nikkei -2.76%, Shanghai +0.85 %, Hang Seng -0.98% FTSE -1.17%, DAX -1.92%, CAC -1.93%
Gold prices rose USD$21 to USD$1,152 an ounce. Oil prices (WTI) rose 1.05% to USD$44.64 per barrel.
Upcoming Data releases (NZST):
09:00 – Fed Chair Yellen Speaks
20:00 – EUR M3 Money Supply
00:30 (Saturday) – US Final GDP
02:00 (Saturday) – US Revised University of Michigan Consumer Sentiment
02:00 (Sunday) – Daylight Saving Time Shift
Indicative mid-rate pricing:
NZDUSD 0.6354 1.8%
NZDEUR 0.5660 1.4%
NZDGBP 0.4169 1.8%
NZDJPY 76.25 1.6%
NZDAUD 0.9036 1.2%
NZDCAD 0.8456 1.5%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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