The NZDUSD opens at 0.6811 (mid-rate) this morning.
The NZD has inched up against all its rivals with the exception of the GBP which continues to outperform on news that the UK are preparing to sign off on a £40b divorce bill with Brussels.
Overnight the US leading economic index spiked higher in October with the Conference Board reporting the index surged up by 1.2% well ahead of the forecast 0.6% rise. It is the third consecutive increase in the index following September’s 0.1% and August’s 0.4% increases.
The EUR has managed to recover most of yesterday afternoon’s losses overnight. A breakdown in talks between Merkel's conservatives, the liberal Free Democrats (FDP) and Greens saw the currency decline against all its rivals during the Asian trading session.
This morning at a hearing of the European Parliament's economic and monetary affairs committee in Brussels, ECB President Mario Draghi reiterated that although the Euro-zone's economic recovery remains strong, a lack of inflation remains a concern. At the end of October the ECB confirmed that although they will halve their asset purchases at the start of 2019, they will continue purchasing for another nine months.
Overnight, tonight the latest dairy auction will drive direction for the NZD. Importers will be hoping for an increase in auction prices at tonight’s auction following three consecutive declines in dairy prices.
Global equity markets are broadly higher- Dow +0.36%, S&P 500 +0.15%, FTSE +0.12%, DAX +0.50%, CAC +0.40%, Nikkei -0.60%, Shanghai +0.28%.
Gold prices are down 1.2% trading at $1,277 an ounce. WTI Crude Oil prices have slipped lower, currently down 1.0% trading at $56.01 a barrel.
Current indicative rates:
NZDUSD 0.6811 0.0%
NZDEUR 0.5798 0.3%
NZDGBP 0.5143 -0.3%
NZDJPY 76.68 0.5%
NZDAUD 0.9021 0.1%
NZDCAD 0.8713 0.3%
GBPNZD 1.9444 0.3%
Upcoming Data releases (NZST):
- 15:00 - Credit Card Spending
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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