The NZDUSD opens at 0.7358 (mid-rate) this morning.
Yesterday’s disappointing inflation data which saw the NZD fall sharply was all but forgotten by the early afternoon with the NZD joining all other G10 currencies in rising sharply against the USD. The news that Donald Trump and his party had once again failed to gain enough support to repeal and replace Obamacare has cast doubts over Trump’s ability to pass any new bills including his proposed tax reforms.
The AUD has been the strongest performing G10 currency surging higher following the release of the RBA meeting minutes. The Australian central bank noted the economy was improving and estimated a neutral cash rate should be 3.5%, 2% higher than where it currently sits.
This morning’s GDT auction resulted in a 0.2% gain in the index following a 0.4% fall at the previous auction a fortnight ago. Whole Milk Powder prices gained 0.3% following a 2.6% increase previously. Skim milk powder prices suffered a second consecutive fall down 3.2%, while butter prices have continued to push higher up a further 3.4% at this morning’s auction.
UK inflation unexpectedly slowed in June, with the Office for National Statistics reporting the inflation rate slowed to 2.6%. It was the first fall since October last year. Economists had expected inflation to remain unchanged at 2.9%.
Global equity markets have turned negative - Dow -0.29%, S&P 500 -0.03%, FTSE -0.19%, DAX -1.25%, CAC -1.09%, Nikkei -0.59%, Shanghai +0.35%.
Gold prices are up 0.7% trading at $1,243 an ounce .WTI Crude Oil prices have edged higher, up 0.7% at $46.29 a barrel.
Current indicative rates:
NZDUSD 0.7358 0.6%
NZDEUR 0.6363 -0.2%
NZDGBP 0.5638 0.6%
NZDJPY 82.41 0.0%
NZDAUD 0.9288 -1.0%
NZDCAD 0.9285 0.0%
GBPNZD 1.7736 -0.6%
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.