The NZDUSD opens at 0.7175 (mid-rate) this morning.
The NZD has edged lower against the majority of its trading partners overnight with yesterday’s better than expected electronic card transactions data release (which bodes well for Friday’s retail sales data report) having little effect on the currency.
It’s been a slow start to the week which should continue through our trading day as investors await Fed Chair Janet Yellen’s testimony before the Senate Banking Committee in the early hours of tomorrow morning for direction.
Yesterday Japan's gross domestic product gained 0.2% q/q in Q4 2016 just short of the forecast 0.3% increase. On an annual basis GDP grew by 1% again just missing the forecast of 1.1% growth.
Euro-zone GDP growth forecasts were revised higher overnight with the European commission now expecting the region to grow by 1.6% in 2017, up from the previously forecast 1.5% growth. 2018 growth was also upwardly revised from 1.7% to 1.8%. Although investment growth is expected to remain subdued the increase in the forecasts is predicted to be driven by domestic demand.
Global equity markets are broadly higher- Dow +0.66%, S&P 500 +0.47%, FTSE +0.28%, DAX +0.92%, CAC +1.24%, Nikkei +0.41%, Shanghai +0.63%.
Gold prices have edged lower overnight currently down 0.8% at $1,224 an ounce, WTI Crude Oil is down 2% currently trading at $52.78 a barrel.
Current indicative rates:
NZDUSD 0.7175 -0.1%
NZDEUR 0.6761 -0.1%
NZDGBP 0.5734 -0.7%
NZDJPY 81.55 -0.3%
NZDAUD 0.9381 0.1%
NZDCAD 0.9376 -0.4%
Upcoming Data releases (NZST):
- 10:45 - FPI m/m
- 14:30 - CNY CPI y/y
- Yellen Testifies tomorrow morning
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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