The NZDUSD opens at 0.6855 (mid-rate) this morning.
The NZD has given up 2 cents from last week’s high against the USD and has fallen against all its trading partners with the exception of the JPY, ahead of this week’s FOMC,RBNZ and Bank of Japan monetary policy statements.
The FOMC are widely expected to leave interest rates unchanged with investors looking to the accompanying statement for further timing on tightening.
The RBNZ is also expected to leave interest rates unchanged after surprising the market with a cut in March, with the accompanying statement signalling further easing is likely.
The Bank of Japan interest rate decision will be another close call, with analysts evenly split on what to expect with many believing that the recent Yen appreciation could see the BOJ push rates further into negative territory.
The British Pound has made strong gains after Obama urged Britain to stay in the European Union, the U.S. President warned Britain’s voters that it could take up to a decade to strike a trade deal with the United States should they decide to exit the European Union.
Global equity markets have started the week on the back foot. - Dow -0.38%, S&P 500 -0.38%, FTSE -0.78%, DAX -0.67%, CAC -0.52%, Nikkei -0.76%, Shanghai -0.42%.
Gold prices are currently trading $1237 an ounce, WTI Crude Oil is currently trading at $42.71 a barrel.
Current indicative rates:
NZDUSD 0.6855
NZDEUR 0.6084
NZDGBP 0.4732
NZDJPY 76.20
NZDAUD 0.8885
NZDCAD 0.8687
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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