The NZDUSD opens at 0.6800 (mid-rate) this morning.
The NZDUSD has fallen further as sentiment wanes and a risk-off mood prevails. Global equity markets are all in negative territory amid global growth concerns.
Last night International Monetary Fund Managing Director Christine Lagarde, during a speech in Frankfurt stated “the recovery remains too slow, too fragile, and risks to its durability are increasing," these comments along with disappointing Euro-zone PMI data releases drove equity markets and risk traded currencies lower.
U.S. data releases delivered mixed results after the trade deficit widened more than expected $47.1B (exp $46.2B) while the ISM Non-Manufacturing PMI printed ahead of the expected 54.1 achieving a 54.5 result.
Overnight, and for only the second time in 2016 the Global Dairy Trade auction increased, this time gaining 2.1% from the previous auction a fortnight ago. Volume also increased with 22,682 tonnes selling at last night’s auction up from 20,406 tonnes at the previous auction.
With very little in the way of data releases during our trading day traders will await tomorrow morning’s FOMC minutes for further direction.
Global equity markets are broadly lower - Dow -0.38%, S&P 500 -0.66%, FTSE -1.19%, DAX -2.63%, CAC -2.18%, Nikkei -2.42%, Shanghai +1.45%.
Gold prices are up 1.1% currently trading at $1228 an ounce, WTI Crude Oil has stopped sliding, currently trading at $36.00 (+0.6%) a barrel.
Current indicative rates:
NZDUSD 0.6800 -0.5%
NZDEUR 0.5973 -0.4%
NZDGBP 0.4805 0.3%
NZDJPY 74.95 -1.5%
NZDAUD 0.9020 0.3%
NZDCAD 0.8942 0.0%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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