The NZDUSD opens at 0.6928 (mid-rate) this morning.
The Kiwi has traded 33 points lower and 13 point higher than yesterday’s open over the past 24 hours and starts today relatively unchanged.
The markets appear content to tread water ahead of tomorrow morning’s FOMC rate announcement at 7am and Press Conference at 7:30am. Expectations are set to see key rates to rise by 0.25% to 0.75%, and traders will also be looking to Fed Chair Janet Yellen’s conference to provide further direction for US Dollar based pairs.
The ZEW Indicator of Economic Sentiment for Germany improved slightly by 2.4 points in March 2017, with the indicator now standing at 12.8 points. The long-term average, which has been calculated since the survey was begun, is 23.9 points. The March result is a reflection of the current uncertainty surrounding future economic development.
The U.S. Producer Price Index (PPI) for final demand increased 0.3% in February, seasonally adjusted, the U.S. Bureau of Labour Statistics reported overnight. Final demand prices rose 0.6% in January and 0.2% in December.
The OPEC Reference Basket rose in February for the third consecutive month, ending up about 2% to average $53.37/b. Crude futures, traded in a relatively narrow range for the second month in a row. High compliance with supply adjustments by OPEC and some non-OPEC producers supported gains
Global equity markets are lower overnight: Dow -0.20%, S&P -0.38%, FTSE -0.13%, DAX -0.01%, CAC -0.51%, Nikkei -0.12%, Shanghai +0.07%.
Gold prices are steady currently trading at $1,203 an ounce, WTI Crude Oil is down 1.7% currently trading at $47.54 a barrel.
Current indicative rates:
NZDUSD 0.6928 0.0%
NZDEUR 0.6523 0.4%
NZDGBP 0.5693 0.6%
NZDJPY 79.40 -0.1%
NZDAUD 0.9153 0.2%
NZDCAD 0.9342 0.3%
Upcoming Data releases (NZST):
- 10:45am - NZD - Current Account
- 12:30pm - AUD - Westpac Consumer Sentiment
- 1:30pm - AUD - New Motor Vehicle Sales m/m
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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