The NZDUSD opens at 0.6468 (mid-rate) this morning.
With investors widely expecting and positioning their trading books for another fall in dairy prices at this morning’s GDT auction the NZD showed little reaction to the index falling 7.9% and volumes plummeting by 11.6%. The auctions are held fortnightly, with the next one scheduled for December 1.
Overnight following seven consecutive months of decline the German ZEW Economic Sentiment strengthened more-than-expected in November rising to 10.4pts in November from 1.9pts in October, economists had expected a score of 6.
The U.S. Consumer Price Index increased by 0.2% in line with expectation for the month of October, while U.S. Industrial Production unexpectedly dipped by 0.2% in October economists had been expecting a slight increase of 0.1%.
We are expecting a subdued trading day ahead of tomorrow mornings FOMC Minutes for October.
Global equity markets are sharply higher - Dow +0.43%, S&P 500 +0.37%, FTSE +1.99%, DAX +2.41%, CAC +2.77%, Nikkei +1.22%, Shanghai -0.06%.
Indicative mid-rate pricing:
NZDUSD 0.6468 -0.4%
NZDEUR 0.6073 0.0%
NZDGBP 0.4251 -0.4%
NZDJPY 79.75 -0.3%
NZDAUD 0.9085 -0.7%
NZDCAD 0.8615 -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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