The NZDUSD opens at 0.7285 (mid-rate) this morning.
The NZDUSD looks set to retest 0.7300 as once again US economic data fell short of economists’ estimates.
Friday evening’s US economic data releases disappointed with new home sales, flash manufacturing PMI and flash services PMI all failing to reach economists’ forecasts. New home sales climbed by 2.9% to an annual rate of 610K well below the expected 5.4% spike while manufacturing PMI and services PMI both slowed in June with the index’s dipping to 52.1 and 53.0 from 52.7 and 53.6 respectively.
Earlier in the evening Euro-zone private sector growth eased in June after posting a six-year-high in May with a slowdown in services activity leading the way. The pace of growth in Germany's private sector was the weakest since February with the index dipping to 53.7 from 55.4 in May. Economists had expected the index to edge down to 56.2.
There is little in the way of local economic data going into month/quarter end with direction likely to be driven by a string of speeches from several Central Bank Governors and offshore data releases.
Global equity markets closed out the week mixed - Dow -0.01%, S&P 500 +0.15%, FTSE -0.20%, DAX -0.47%, CAC -0.30%, Nikkei +0.11%, Shanghai +0.33%.
Gold prices rallied 0.5% on Friday closing out the week flat at $1,256 an ounce. .WTI Crude Oil prices edged higher on Friday recovering to $43.01 a barrel after setting a new yearly low of $42.05 earlier in the week.
Current indicative rates:
NZDUSD 0.7285 0.3%
NZDEUR 0.6501 -0.2%
NZDGBP 0.5718 -0.1%
NZDJPY 81.02 0.3%
NZDAUD 0.9628 0.0%
NZDCAD 0.9651 0.4%
GBPNZD 1.7488 0.5%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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