The NZDUSD opens at 0.7297 (mid-rate) this morning.
The AUD has been the big mover over the past 24hrs, retreating from its recent highs after the RBA kept interest rates at record a record low of 1.5% and voiced their concerns over a lack of wage growth. The NZDAUD cross rate is pushing back up towards 96 cents.
Global equity markets have turned negative as geopolitical tensions increased after North Korea launched its first intercontinental ballistic missile in the direction of Japan. The launch came as the US prepared to mark Independence Day, and triggered a Twitter outburst from President Donald Trump who urged China to act to “end this nonsense once and for all”.
At this morning’s GDT auction the overall price index decreased for the second consecutive time, edging down by 0.4% following a 0.8% decrease at the previous auction. Although skimmed milk powder fell 4.5%, an increase in whole milk powder prices (+2.6%) as well as an increase in volume sold at this morning’s auction, 28,574 tonnes, up from 21,171 tonnes helped support the NZD.
The UK’s Purchasing Managers' Index for construction fell more than forecast in June decreasing to 54.8 from 56.0 in May. The index had benn forecast to edge down to 55.0.
Global equity markets are broadly lower- Dow Closed, S&P 500 Closed, FTSE -0.27%, DAX -0.31%, CAC -0.40%, Nikkei -0.12%, Shanghai -0.41%.
Gold prices have edged higher up 0.2% at $1,223 an ounce. .WTI Crude Oil prices have risen for the ninth consecutive day gaining 0.2% over the past 24hrs to be trading at $47.08 a barrel.
Current indicative rates:
NZDUSD 0.7297 0.0%
NZDEUR 0.6428 0.1%
NZDGBP 0.5639 0.0%
NZDJPY 82.59 -0.3%
NZDAUD 0.9594 0.7%
NZDCAD 0.9439 -0.5%
GBPNZD 1.7733 0.0%
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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