The NZDUSD opens at 0.7168 (mid-rate) this morning.
The NZDUSD traded a narrow 29 point (0.4%) range in quiet trading as the US markets were closed in observance of Labor Day. The Kiwi outperformed all the major currencies in the past 24 hours.
At 51.1 in August, the seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) remained above the 50.0 no-change threshold for the twelfth month running. However, the latest reading was down from 51.9 in July and pointed to the weakest overall UK construction performance since August 2016.
A key reason for the slowdown was a lack of new orders to replace completed projects.Survey respondents linked subdued demand to reduced business investment and heightened economic uncertainty. As a result, construction firms exerted greater caution in terms of their staff hiring, with employment numbers rising at the slowest pace since July 2016.
Industrial Producer Prices remained stable in the euro area (EA19) in July, while they rose by 0.1% in the EU28. In June 2017 prices decreased by 0.2% in the euro area and by 0.3% in the EU28. In July 2017, compared with July 2016, industrial producer prices rose by 2.0% in the euro area and by 2.3% in the EU28.
In September 2017, the Euroland economy continues to perform well. The Euroland Sentix Investor Confidence overall index rose 0.5 from August’s 27.7 points to 28.2 points in September, which is up substantially from six months ago when the index was at 23.9 points. The Index also monitors other world regions, which on the whole remain on a growth path. In Japan the situation is strikingly upward and reached the highest value since summer 2007.
Global equity markets were lower, China the exception: Dow and S&P 500 closed, FTSE -0.36%, DAX -0.33%, CAC -0.38%, Nikkei -0.93%, Shanghai +0.37%.
Gold prices rallied $9 or 0.7% currently trading at $1,333 an ounce. WTI Crude Oil prices rose 0.2% trading at $47.38 a barrel.
Current indicative rates:
NZDUSD 0.7168 0.4%
NZDEUR 0.6021 0.2%
NZDGBP 0.5543 0.6%
NZDJPY 78.58 0.5%
NZDAUD 0.9023 0.3%
NZDCAD 0.8895 0.2%
GBPNZD 1.8027 -0.6%
Upcoming Data releases (NZST):
- 11:30am - AUD - AIG Services Index
- 1:00pm - NZD - ANZ Commodity Prices m/m
- 1:00pm - AUD - Current Account
- 1:45pm - CNY - Caixin Services PMI
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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