The NZDUSD opens at 0.6995 (mid-rate) this morning.
The NZD has started the week on the back foot with investors weary of tonight’s Global Dairy Trade auction. Whole milk powder futures (NZ’s key commodity export) are now trading below $3,000 a metric tonne after spiking to a 30 month high of $3,572 M/T in December. An increase in production after improved weather conditions has prompted Fonterra to increase the volume of whole milk powder offered at the auction.
Yesterday afternoon China set a lower growth target for this year with the government aiming to increase economic growth by 6.5% in 2017 down from 6.7% in 2016. The decrease comes as the government prepares to trim the heavy debt build-up and ensure financial stability. Premier Li Keqiang said the “growth target is in line with the aim to create a moderately prosperous society”.
Overnight US factory orders increased in line with expectations in January. The Commerce Department report showed factory orders rose by 1.2% in January following a 1.3% increase in December.
This afternoon the Reserve bank of Australia release their latest monetary policy statement, the expectation is that they will leave the OCR unchanged at a record low of 1.5%.
Global equity markets are slightly weaker- Dow -0.28, S&P +1.46%, FTSE -0.48%, DAX -0.57%, CAC -0.46%, Nikkei -0.46%, Shanghai +0.48%.
Gold prices have edged lower currently down 1.2% trading at $1,226 an ounce, WTI Crude Oil is currently down 0.9% trading at $53.14 a barrel.
Current indicative rates:
NZDUSD 0.6995 -0.9%
NZDEUR 0.6612 -0.1%
NZDGBP 0.5718 -0.6%
NZDJPY 79.75 -1.3%
NZDAUD 0.9235 -1.0%
NZDCAD 0.9388 -0.7%
Upcoming Data releases (NZST):
- RBA cash Rate Statement16:30
- Overnight - GDT Price Index
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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