The NZDUSD opens at 0.6794 (mid-rate) this morning.
The NZD rallied over the past 24 hours particularly against the Yen after their poor Producer Price Index result, and also due to weaker than expected U.S. data and a rally in commodity prices, especially Oil.
Japanese PPI fell 4.2% over the last 12 months, the worst reading since August 2014. The forecast was for a 3.7% fall and it was worse than the -3.8% from the previous 12 months
Business activity for New York manufacturers unexpectedly declined in the month of May. The Index slid to a -9.0 in May from a +9.6 in April. A negative reading indicates a contraction in regional manufacturing activity. Economists expectation was for a reading of +7.0
Homebuilder confidence in the U.S. continued to hold steady in the month of May. The NAHB/Wells Fargo Housing Market Index came in at 58 in May, unchanged from the three previous months. Economists had expected the index to inch up to 59.
The Confederation of British Industry on Monday downgraded its U.K. growth outlook as uncertainty ahead of the EU referendum weigh on investment plans. There are signs that uncertainty over the outcome of the EU referendum is having a tangible impact on the spending plans of some firms.
Ahead for the week for the NZD we have Inflation Expectations q/q this morning, Global Dairy Trade Auction early tomorrow and PPI. G7 meetings take place for two full days – Friday and Saturday
Global equity markets are broadly higher: Dow 1.16%, S&P 500 1.15%, FTSE +0.21%, DAX +0.92%, CAC -0.18%, Nikkei 0.33%, Shanghai 0.84%.
Gold prices are up $2 (0.2%) currently trading at $1274 an ounce, WTI Crude Oil rallied strongly 3.4% currently trading at $47.76 a barrel
Current indicative rates:
NZDUSD 0.6794 0.6%
NZDEUR 0.6001 0.5%
NZDGBP 0.4720 0.3%
NZDJPY 74.02 0.
NZDAUD 0.9316 -0.1%
NZDCAD 0.8760 0.3%
Upcoming Data releases (NZST):
- 15:00- Inflation Expectations 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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