The NZDUSD opens at 0.7046 (mid-rate) this morning.
Following a 6.3% decline and with the futures pointing to yet another fall in global dairy prices this morning’ auction surprised the market by increasing by 1.7% to $3,101 a tonne. Whole milk powder prices increased by 2.9% and volume spiked by 10% from the previous auction. The increase follows on from two consecutive falls in the GDT price index with a 3.2% drop seen at the end of February and a 6.3% drop at the last auction a fortnight ago.
The GBP has been the best performing currency over the past 24hrs strengthening after the Office for National Statistics reported that U.K. inflation accelerated more-than-expected to 2.3% in February from 1.8% in January. This was the biggest increase in prices since September 2013. The result exceeded expectations as well as the Bank of England’s 2% inflation target.
The CAD shrugged off a fall in oil prices after their retail sales for the month of February rose by 2.2% well ahead of the expected 1.5% increase. The result follows on from a 0.5% fall in January.
Global equity markets are broadly lower- Dow -0.93%, S&P -1.1%, FTSE -0.69%, DAX -0.75%, CAC -0.19%, Nikkei -0.34%, Shanghai +0.33%.
Gold prices are up another 1% currently trading at $1,245 an ounce, WTI Crude Oil has fallen 2.1% overnight currently trading at $47.40 a barrel.
Current indicative rates:
NZDUSD 0.7046 -0.1%
NZDEUR 0.6521 -0.7%
NZDGBP 0.5644 -1.2%
NZDJPY 78.81 -0.7%
NZDAUD 0.9148 0.3%
NZDCAD 0.9405 -0.2%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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