The NZDUSD opens at 0.7001 (mid-rate) this morning.
A reasonably quiet start to the quarter has seen the NZD trade tight ranges against its rivals. Yesterday afternoon following a disappointing retail sales report out of Australia the NZDAUD cross rate pushed back above 0.92 and opens up this morning still holding the level.
Overnight the GBP came under pressure after their manufacturing PMI unexpectedly declined in the month of March. The index fell from 54.5 in February to 54.2 in March. Economists had expected the index to edge up to 55.1.
There was better news for the Euro-zone overnight after the Eurostat unemployment report for the month of February fell to its lowest level since 2009. The report showed the jobless rate now sits at 9.5% marginally lower than January’s 9.6% reading.
Us construction spending rose 0.8% in February after unexpectedly falling by 0.4% in January. The result was driven by an increase in residential construction which increased by 1.8%.
The US purchasing managers index dipped less than expected in March with the index recording a 57.2 reading. After rising to its highest level in 2 years in February with a reading of 57.7 economists had expected the index to pull back to 57.0 in March.
This morning we await the release of our business confidence report while this afternoon the monthly RBA rate statement will dictate direction for the NZDAUD cross rate. Economists are expecting the RBA to leave the OCR unchanged at a record low of 1.5%.
Global equity markets remain mixed - Dow -0.29%, S&P -0.49%, FTSE -0.55%, DAX -0.44%, CAC -0.71%, Nikkei +0.39%, Shanghai +0.38%.
Gold prices has edged higher currently up 0.5% at $1,252 an ounce, WTI Crude Oil is holding steady trading at $50.31 a barrel.
Current indicative rates:
NZDUSD 0.7001 -0.1%
NZDEUR 0.6562 0.0%
NZDGBP 0.5609 0.6%
NZDJPY 77.66 -0.5%
NZDAUD 0.9206 0.3%
NZDCAD 0.9371 0.5%
GBPNZD 1.7828 -0.6%
Upcoming Data releases (NZST):
- 10:00 - NZIER Business Confidence
- 16:30 - RBA Rate Statement
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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