The NZDUSD opens at 0.7125 (mid-rate) this morning.
The latest New Zealand Institute of Economic Research (NZIER) report has helped the NZD extend yesterday’s gains against all its rivals. The report predicts that the NZ economy will grow at over 3% per year, for the next five years, benefiting from tourism, construction and immigration. The institute also believes that the RBNZ is unlikely to lower the Official Cash Rate from its current level of 1.75%. Later this morning we will get the RBNZ’s view when they release their latest financial stability report.
Overnight US economic data releases printed ahead of expectations with consumer confidence for the month of November surging to 107.1 from an upwardly revised 100.8 in October, economists had been expecting the index to rise to 101.0 from the 98.6 originally reported for October.
Boosted by an increase in consumer spending Q3 GDP in the US was upwardly revised to 3.2% compared to the previously estimated 2.9% increase. Economists had expected the pace of growth to be upwardly revised to 3.0%.
Direction for the NZD today will be driven by this morning’s RBNZ financial stability report, due out at 09:00am followed by RBNZ Gov Wheeler’s speech at 13:10 this afternoon.
Overnight investors will be focused on OPEC’s meeting in Vienna with significant downside risk to oil prices and commodity linked currencies should the members fail to agree on the proposed production cuts.
Global equity markets remain mixed - Dow +0.15%, S&P 500 +0.24%, FTSE -0.40%, DAX +0.36%, CAC +0.91%, Nikkei -0.27%, Shanghai +0.18%.
Gold prices are unchanged at $1,188 an ounce WTI Crude Oil has fallen sharply overnight currently down 4.3% at $45.30 a barrel.
Current indicative rates:
NZDUSD 0.7125 0.8%
NZDEUR 0.6695 0.3%
NZDGBP 0.5699 0.1%
NZDJPY 80.13 0.9%
NZDAUD 0.9527 0.8%
NZDCAD 0.9561 0.9%
Upcoming Data releases (NZST):
- 09:00 - RBNZ Financial Stability Report
- 13:10 - RBNZ Gov Wheeler 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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