The NZDUSD opens at 0.6875 (mid-rate) this morning.
It’s been another example of buy the rumour sell the fact as oil producers failed to strike a deal to freeze output in an effort to boost the current oil price.
The NZDUSD had stretched back above 0.6920 late on Friday but has gapped lower on the open this morning along with all other commodity linked currencies.
Friday’s U.S. data releases were once again slightly softer than expected with the University of Michigan consumer sentiment index for April coming in at 89.7 (expected 92.0) compared to the final March reading of 91.0.
Industrial production also disappointed falling by 0.6% (expected -0.1%) in March with February’s final reading also downwardly revised from -0.5% to -0.6%
This morning’s CPI data release should be the highlight for the NZD today, hitting the tapes just prior to the oil market opening.
Global equity markets closed out the week slightly softer - Dow -0.16%, S&P 500 -0.1%, FTSE -0.34%, DAX -0.42%, CAC -0.36%, Nikkei -0.37%, Shanghai -0.14%.
Gold prices pushed higher on Friday closing out the week at $1233 an ounce, WTI Crude Oil lost 1.3% ($40.36 a barrel) on Friday with investors trimming their long positions ahead of the Doha meeting.
Current indicative rates:
NZDUSD 0.6875 0.2%
NZDEUR 0.6080 -0.2%
NZDGBP 0.4837 -0.2%
NZDJPY 74.40 -0.8%
NZDAUD 0.8990 1.0%
NZDCAD 0.8902 1.0%
Upcoming Data releases (NZST):
10:45 - CPI q/q
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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