The NZDUSD opens -0.8% lower this morning at 0.6703 after initially pushing higher yesterday to 0.6830.
The Fed raised its benchmark interest rates +0.25 for the first time in almost a decade (last time was June 2006), the follow through came overnight, as the the interest rate outlook begins to diverge from other central banks.
US unemployment was right on target with expectation at 271k and the Philly fed manufacturing lower at -5.9%
Elesewhere, locally NZ GDP was higher at 0.9% following the recent trend in our outlook. The NZD is holding ground against its rival AUD, currently above 0.94.
The UK had great improvement in retail sales m/m at +1.7% with the market only expecting 0.6%.
The biggest loser was Argentina’s Peso, dropping 31% after the new administration lifted restrictions on foreign currency.
Mixed news on the equity markets saw Asia & Europe up and the Americas down. Dow -0.74%, S&P 500 -0.90%, FTSE +0.68%, DAX +2.57%, CAC +1.14%, Nikkei +1.59%, Shanghai +1.81%, Hang Seng +0.79%.
Gold is lower at $1051.10 an ounce, Oil (WTI) continually lower at $34.78 a barrel.
Current indicative rates:
NZDUSD 0.6703 -0.8%
NZDEUR 0.6200 0.2%
NZDGBP 0.4503 0.1%
NZDJPY 82.27 -0.3%
NZDAUD 0.9417 0.6%
NZDCAD 0.9358 0.4%
Upcoming Data releases (NZST):
-
13:00 - NZD - ANZ Business Conference
-
JPY – Monetary Policy Statement + BOJ Press conference - Tentative
-
CAD – Core CPI m/m 2h30 Sat morning
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.