The NZDUSD opens at 0.6909 (mid-rate) this morning.
After five consecutive daily losses and trading to 9 months lows against the USD the NZD along with the AUD have rallied circa 1% against the majors. The push higher against the USD comes on the back of further disappointing US economic data.
Overnight US personal spending and personal income came in slightly lower than forecast, while manufacturing PMI and construction spending were very disappointing with construction spending unexpectedly decreasing during the month of March after spiking 1.8% in February. Economists had expected spending to increase by 0.5%. The ISM purchasing managers index fell more than expected in April with the report showing the index fell to 54.8 after rising to 57.2 in March. The index had been expected to edge down to 56.6.
This afternoon manufacturing data out of China and the RBA cash rate statement will be the highlights, with the RBA expected to keep their OCR unchanged at a record low of 1.5%.
UK and European equity markets were closed yesterday - Dow +0.02%, S&P 500 +0.31%, FTSE Closed DAX Closed, CAC Closed, Nikkei +0.59%, Shanghai +0.08%.
Gold prices are down 0.8% currently trading at $1,267 an ounce. WTI Crude Oil is down 1% overnight currently trading at $48.85 a barrel.
Current indicative rates:
NZDUSD 0.6909 0.7%
NZDEUR 0.6335 0.8%
NZDGBP 0.5353 1.0%
NZDJPY 77.26 1.2%
NZDAUD 0.9174 -0.1%
NZDCAD 0.9441 0.8%
GBPNZD 1.8681 -1.0%
Upcoming Data releases (NZST):
- 13:45 CNY Caixin Manufacturing PMI
- 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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