The NZDUSD opens at 0.6975 (mid-rate) this morning.
The NZD has failed to take advantage of this morning’s second consecutive increase in Global dairy prices, and opens this morning slightly lower against the majors.
Following an increase in the dairy prices index of 1.7% a fortnight ago this morning’s auction saw the index rise a further 1.6%. The price of whole milk power (WMP) increased by 2.4% with an average WMP price of $2,924. Volumes also increased from the previous auction with 22,642mt selling under the hammer up from 22,498mt (+0.64%).
Euro-zone retail sales for the month of February rose 0.7%m/m just ahead of economists’ estimates of 0.5% growth. On an annual basis growth increased from 1.5%in January to 1.8% in February confounding economists who had expected growth to fall to 1%.
There was better news for the USD overnight with the Commerce Department reporting a narrowing in the trade deficit. The report showed the deficit in February narrowed to $43.6b from a downwardly revised $48.2b in January. US factory orders continued to strengthen in February climbing by 1% after spiking by an upwardly revised 1.5% in January. The main driver was once again durable goods which rose by 1.8%.
Markets remain nervous ahead of tomorrow mornings FOMC meeting minutes and President Donald Trump’s scheduled meeting with the Chinese President Xi Jinping, where discussing’s are expected to include trade.
Global equity markets with the exception of the Nikkei are higher - Dow +0.17%, S&P +0.04%, FTSE +0.54%, DAX +0.21%, CAC +0.30%, Nikkei -0.91%, Shanghai 0.38%.
Gold prices are little changed at $1,255 an ounce, WTI Crude Oil is up by 1.4% overnight currently trading at $51.03 a barrel.
Current indicative rates:
NZDUSD 0.6975 -0.4%
NZDEUR 0.6535 -0.4%
NZDGBP 0.5603 -0.1%
NZDJPY 77.21 -0.6%
NZDAUD 0.9221 0.2%
NZDCAD 0.9354 -0.2%
GBPNZD 1.7848 0.1%
Upcoming Data releases (NZST):
- 13:00 - ANZ Commodity Prices 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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