The NZDUSD opens at 0.7384 (mid-rate) this morning.
The NZD traded at 0.7400 overnight and starts today reasonably flat against the other major currencies. The NZDUSD cross has traded a 181 point range or 2.5% this week, trending higher each day from last Friday’s 0.7175 low.
U.S. producer prices accelerated in January, boosted by strong gains in the cost of gasoline and healthcare, offering more evidence that inflation pressures were building up. The report came on the heels of data on Wednesday night showing a broad increase in consumer prices in January. US PPI rose 0.4% last month after being unchanged in December. In the 12 months through January, the PPI rose 2.7% after advancing 2.6% in December.
U.S Business activity continued to expand in New York State, according to firms responding to the February 2018 Empire State Manufacturing Survey. The headline general business conditions index (Philly Fed Survey) fell five points to 13.1, suggesting a somewhat slower pace of growth than in January.
Results from the Manufacturing Business Outlook Survey suggest that the region’s manufacturing sector continues to expand in February. The indexes for general activity, new orders, and employment were all positive this month and increased from their readings last month. Price increases for inputs were more widespread this month, according to the respondents. The index for current manufacturing activity increased 4 points in February to a reading of 25.8.
The number of Americans filing for unemployment benefits rebounded from a near 45-year low last week, but remained below a level that is associated with a tightening labour market. U.S. Initial Claims for state unemployment benefits increased 7,000 to a seasonally adjusted 230,000 for the week ended Feb. 10.
U.S. factory output was flat in January, for the second straight month, raising questions about the manufacturing outlook as production dropped in the aerospace, plastics and food industries.
Global equity markets are broadly higher: Dow +0.57%, S&P 500 +0.71%, FTSE +0.29%, DAX +0.06%, CAC +1.11%, Nikkei +1.47, Shanghai +0.45%.
Gold prices are slightly higher up 0.3% trading at $1,351 an ounce. WTI Crude Oil prices are surged 2.8% higher trading at $60.83 a barrel.
Current indicative rates:
| NZDUSD | 0.7384 | 0.3% |
| NZDEUR | 0.5916 | -0.2% |
| NZDGBP | 0.5254 | -0.2% |
| NZDJPY | 78.75 | 0.0% |
| NZDAUD | 0.9325 | 0.1% |
| NZDCAD | 0.9232 | 0.1% |
| GBPNZD | 1.9024 | 0.1% |
Upcoming Data releases (NZST):
- 10:30am -NZD - Business NZ Manufacturing Index
- 11:30am -AUD- RBA Gov Lowe Speaks
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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