The NZDUSD opens at 0.6658 (mid-rate) this morning.
A pull back in commodity prices with oil leading the way has seen all commodity-linked currencies including the NZD drift lower.
Crude oil prices are trading down 3.5% from last week’s yearly highs after Iran said that it would increase output.
The recent rally (up 45% from a 13yr low of $27 a barrel in Jan) came as major Opec producers started work on a plan to freeze output, and supply disruptions removed more than 800,000 barrels a day of production from the market.
Overnight Euro-zone industrial production grew 2.1% month-on-month (its fastest pace in more than six years) reversing a revised 0.5% fall in December. On a yearly basis, industrial output expanded 2.8% well ahead of the expected 1.6% increase.
This morning RBNZ Governor Wheeler is speaking at a closed-door event but any leaked news will be the main driver for the NZD during our trading day.
Global equity markets have continued to push higher - Dow +0.18%, S&P 500 +0.05%, FTSE +0.57%, DAX +1.62%, CAC +0.31%, Nikkei +1.74%, Shanghai +1.75%.
Gold prices have continued to slide currently down 1% at $1238 an ounce, WTI Crude Oil has given back some of last week’s gains over the past 24hrs, and is currently down 3.5% at $37.13 a barrel.
Current indicative rates:
NZDUSD 0.6658 -0.9%
NZDEUR 0.6009 -0.4%
NZDGBP 0.4655 -0.4%
NZDJPY 75.75 -1.1%
NZDAUD 0.8885 -0.3%
NZDCAD 0.8846 -0.4%
Upcoming data releases
- 8:00 RBNZ Gov Wheeler Speaks
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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