The NZDUSD opens higher at 0.6590 this morning.
The USD lost ground Friday, nudging the NZDUSD higher, as the market continue to ruminate on Fed interest rate cuts.
The EUR was buoyed by stronger-than-forecast survey data on French and German business activity. Like the US Fed, the European Central Bank has signalled they were open to easing policy to counter a global economic slowdown and fallout from global trade tensions.
Speaking of global trade, the US and China meet towards the end of this week at the G20 summit to resolve, or at least ease, their trade dispute.
The GBPUSD slipped from an 11-day high after Brexiteer Boris Johnson moved closer to becoming the British Prime Minister. Last week, the Bank of England kept to the script that UK interest rates would need to rise.
The focus domestically this week is on Wednesday’s RBNZ official cash rate (OCR) decision. No change to the OCR is expected but the markets will be alert to any hints on the likelihood and timing of future interest rate cuts.
NZ Credit Card Spending figures will be released at 3:00pm today.
Global equity markets were mostly lower on the day - Dow -0.1%, S&P 500 -0.1%, FTSE -0.2%, DAX -0.1%, CAC -0.1%, Nikkei -1.0%, Shanghai +0.5%.
Gold prices gained 0.7% to USD$1,399 an ounce, having traded to a 6-year high of USD$140.78 intra-session. WTI Crude Oil prices rose 0.8% to US$57.61 per barrel, having jumped 10% the past week on fears the US would launch an attack on Iran and disrupt oil flows from the Middle East.
Current indicative rates:
Upcoming Data Releases (NZT):
- 3:00pm - NZD - Credit Card Spending
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