The NZDUSD opens at 0.7242 (mid-rate) this morning.
Although trading a 90 point range in the last 24 hours, and briefly trading over 0.7300 the NZD opens relatively unchanged this morning
The NZ Q4 CPI came in at 0.4% growth, better than the 0.3% expected which would suggest the RBNZ are more likely to increase interest rates this year. The Kiwi initially rallied higher but it didn’t last and the USD strengthen on myriad of positive data.
In the week ending January 21, the advance figure for U.S. seasonally adjusted initial claims was 259,000, an increase of 22,000 from the previous week's revised level.
An early look at U.S. trade patterns in December shows a small drop in the nation’s trade deficit. The trade gap in goods, (services are excluded) slipped 0.5% to $65 billion
January data signalled a positive start to 2017 for the U.S. service sector. The latest survey revealed a robust expansion of business activity and another strong increase in incoming new work. Adjusted for seasonal influences, the Markit Flash U.S. Services PMI™ Business Activity Index1 picked up to 55.1 in January, from 53.9 in December, which marked 11 months of sustained expansion.
UK gross domestic product (GDP) was estimated to have increased by 0.6% during Quarter 4 (Oct to Dec) 2016, the same rate of growth as in the previous 2 quarters.
Global equity markets are mixed - Dow +0.13%, S&P 500 -0.10%, FTSE -0.04%, DAX +0.36%, CAC -0.21%, Nikkei +1.81%, Shanghai +0.31%.
Gold prices are down 0.6% currently trading at $1,189 an ounce, WTI Crude Oil has rebounded higher, up 1.2% at $53.85 a barrel.
Current indicative rates:
NZDUSD 0.7242 -0.1%
NZDEUR 0.6770 0.2%
NZDGBP 0.5746 -0.1%
NZDJPY 82.88 0.5%
NZDAUD 0.9596 0.0%
NZDCAD 0.9470 0.0%
Upcoming Data releases (NZST):
- 11:30 - Aust. Import Prices q/q
- 11:30 - Aust. PPI q/q
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.