The Opening Bell: Where currencies start on Monday, June 19, 2017

By Dan Bell

The NZDUSD opens at 0.7255 (mid-rate) this morning.

The NZDUSD has bounced back above 0.7250 following further disappointing economic data out of the US.

The US Commerce Department reports on both new residential construction and building permits fell short of economist’s estimates with housing starts falling by 5.5% in May to an annual rate of 1.092 million, while building permits also slumped, down 4.9% to an annual rate of 1.168 million during the same month. The USD fell further sill on the release of the University of Michigan's preliminary consumer sentiment index for the month of June. The index had been expected to edge up from 97.1 to 97.2 however with the index pulling back to 94.5 investors continued to trim their long USD positions.

Earlier in the day the Bank of Japan, as expected kept interest rates unchanged but any investors hoping for a reduction in the BOJ”s bond purchases were disappointed after Governor Haruhiko Kuroda reiterated that the BOJ has no intention of reducing its bond purchases of 80 trillion yen per year even though recent purchases have slowed significantly.

The highlight for the NZD this week will be Thursday’s RBNZ rate statement, with the market currently pricing in little chance of an interest rate move or any major changes to its policy statement.

Global equity markets closed out the week broadly higher - Dow +0.11%, S&P 500 +0.03%, FTSE +0.60%, DAX +0.48%, CAC +0.89%, Nikkei +0.56%, Shanghai -0.30%.

Gold prices were little changed on Friday closing out the week at $1,253 an ounce. .WTI Crude Oil prices edged higher on Friday but prices fell 2.4% over the course of the week, closing on Friday at $44.74 a barrel.

Current indicative rates:

NZDUSD       0.7255       0.6%
NZDEUR       0.6469       0.1%
NZDGBP       0.5671       0.4%
NZDJPY         80.45        0.7%
NZDAUD       0.9515       0.1%
NZDCAD       0.9581       0.1%
GBPNZD       1.7633      -0.4%

Upcoming Data releases (NZST):

  • 10:00 Westpac Consumer Sentiment

To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.

Email:  

Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »

Daily exchange rates

Select chart tabs »
The 'US$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'AU$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'TWI' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥en' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥uan' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '€uro' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'GBP' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.