The NZDUSD opens at 0.6658 (mid-rate) this morning.
In the absence of any local data releases the NZD traded fairly tight ranges against its major trading partners as investors waited for Federal reserve Chair Janet Yellen’s address to Congress.
In what has been viewed as a fairly balanced speech Yellen failed to rule out another rate hike in its March 15-16 meeting but at the same time said higher Interest rates for riskier borrowers and the strengthening dollar, which has hurt exports, as well as a fall in stocks is “less supportive of growth”.
Yellen went on to comment "These developments, if they prove persistent, could weigh on the outlook for economic activity and the labour market, although declines in longer-term interest rates and oil prices could provide some offset".
Overnight, U.K. industrial production declined at a faster pace than expected in December, with economists expecting a flat reading following Novembers 0.8% fall, the report showed Industrial production fell 1.1%t month-on-month. Manufacturing output also disappointed falling 0.2% verse expectations of a 0.1% rise.
Global equity markets with the exception of the Nikkei have rallied - Dow +0.29%, S&P 500 +1.11%, FTSE +0.71%, DAX +1.55%, CAC +1.59%, Nikkei -2.31%, Shanghai CLOSED.
Gold prices are holding steady at $1196 an ounce, WTI Crude Oil is little changed at $27.75 a barrel.
Current indicative rates:
NZDUSD 0.6658 0.3%
NZDEUR 0.5911 0.6%
NZDGBP 0.4587 -0.1%
NZDJPY 75.80 -0.5%
NZDAUD 0.9377 -0.2%
NZDCAD 0.9285 0.9%
Upcoming Data releases (NZST):
- 10:30 - Business NZ Manufacturing Index
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 »
Daily exchange rates
Select chart tabs
1 Comments
'Overnight, U.K. industrial production declined at a faster pace than expected in December, with economists expecting a flat reading following Novembers 0.8% fall, the report showed Industrial production fell 1.1%t month-on-month. Manufacturing output also disappointed falling 0.2% verse expectations of a 0.1% rise.'
'at a faster pace than expected' is now a stock phrase to describe poor analysis and poor forecasting.
The others are 'at a slower pace than expected', 'less than expected', 'fewer than expected', 'more than expected' etc.
Economic and financial turmoil are panning out much as expected, though somewhat slower than expected after the last failure to address any of the fundamentals (2007-2009).
However, few people expected oil prices to fall to such ridiculously low levels (officially $26-$35 a barrel but in many locations much less, crippling energy companies and entire nations).
TEOTWAWKI. (The End Of The World As We Knew It)
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.