The NZDUSD opens at 0.7065 (mid-rate) this morning.
The NZD along with other commodity-linked currencies continued where it left off on Friday, edging higher against the majority of its trading partners as commodity prices pushed higher.
Overnight the Organisation for Economic Co-operation and Development (OECD), in its semi-annual Global Economic Outlook report, increased its global growth projections. The report cited ongoing shifts in the fiscal stance of major economies, especially the US, after Donald Trump takes office as the president next year as the main reasons for raising their forecasts. The global growth projection for next year increased to 3.3% from the previously forecast 3.2%, with growth forecast to reach 3.6% in 2018.
European Central Bank chief Mario Draghi at a hearing in the European Parliament in Brussels said the Euro-zone economy had “proved to be resilient, in spite of uncertainty stemming from the economic and political environment.” and that the ECB’s monetary stimulus had been a key ingredient of the ongoing recovery. Mr Dragi went on to say the ECB expects the Euro-zone economy to continue to expand at a moderate, but steady pace.
Global equity markets are mixed - Dow -0.14%, S&P 500 -0.28%, FTSE -0.60%, DAX -1.09%, CAC -0.88%, Nikkei -0.13%, Shanghai +0.46%.
Gold prices have edged higher up 0.5% currently trading at $1,188 an ounce WTI Crude Oil has retraced some of Friday’s fall currently up 2.7% at $47.32 a barrel.
Current indicative rates:
NZDUSD 0.7065 0.4%
NZDEUR 0.6675 0.6%
NZDGBP 0.5692 1.0%
NZDJPY 79.42 -0.2%
NZDAUD 0.9452 0.0%
NZDCAD 0.9477 -0.4%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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