The NZDUSD opens at 0.6360 (mid-rate) this morning.
The NZD continued to outperform in the later stages of last week despite US Fed Yellen’s speech having a positive sway.
This indicated the majority of US Fed members believe it necessary to hike rates in 2015. The Kiwis strength was in contrast to the rest of the market which weakened against the USD.
US GDP figures for the second quarter of 2015 came in at 3.9% which was slightly above the 3.7% market forecast. This helped the USD continue its grind higher against the majority of its pairs.
The week ahead has significant event risk with plenty of US Fed speak mixed with local data and finishing with the US Employment numbers on Friday night.
Overnight the market will be paying close attention to the monthly US PCE numbers for further clues on the likely hood of a 2015 rate hike.
Global equity markets finished the week mixed Dow +0.07%, S&P 500 -0.05%, FTSE +2.47%, DAX +2.77%, CAC -3.07%, Nikkei +1.78%, Shanghai -1.60%.
Gold prices were down $8 on Friday, but gained 0.6% on the week to close at $1145 an ounce, WTI Crude Oil continued to perform well closing on Friday at $45.70 a barrel having gained 2.3% over the course of the week.
Indicative mid-rate pricing:
NZDUSD 0.6360 0.1%
NZDEUR 0.5690 0.5%
NZDGBP 0.4185 0.4%
NZDJPY 76.60 0.5%
NZDAUD 0.9045 0.1%
NZDCAD 0.8484 0.3%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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