The Opening Bell: Where currencies start on Wednesday, July 3, 2019

The Opening Bell: Where currencies start on Wednesday, July 3, 2019

By the XE Corporate team

The NZDUSD opens at 0.6668 (mid-rate) this morning.

The AUD is the best performing of the G10 currencies  despite the RBA cutting its OCR by 25 basis points to a new record low of 1.0%.

In the accompanying statement Gov Lowe said that the bank will now wait "monitor developments in the labour market closely and adjust monetary policy if needed", with the word’s “if needed” leaving investors with the impression that further rate cuts may not be required. The Bank also reiterated that future changes in interest rates remain contingent upon the developments in the labour market because the they still see jobs growth as the key to reaching their inflation target.

Yesterday’s disappointing business confidence number is likely to put further pressure on the RBNZ to cut our OCR in August. The quarterly survey showed business confidence fell to its lowest level since March 2009, with a net 31% of businesses expecting a deterioration in general economic conditions over the coming months. As of this morning the market is pricing in 19 basis points of a 25 basis point cut at the August meeting.

In the only other economic data releases of note IHS Markit reported the UK construction sector contracted the most in more than a decade in June, while house price inflation slumped to a four-month low during the same month.

Global equity markets have edged higher, - Dow +0.10%, S&P 500 +0.08%, FTSE +0.82%, DAX +0.04%, CAC +0.16%, Nikkei +0.11%, Shanghai -0.03%.

Gold prices have retraced yesterday’s fall, up 1.6% trading at $1,407 an ounce. WTI Crude Oil prices are sharply lower, down 3.6% Trading at $56.93 a barrel.

Current indicative rates:

NZDUSD 0.6668 -0.1%
NZDEUR  0.5907 -0.1%
NZDGBP 0.5293 0.3%
NZDJPY 71.99 -0.5%
NZDAUD 0.9542 -0.4%
NZDCAD 0.8744 -0.2%
GBPNZD 1.8893 -0.3%

Upcoming Data Releases (NZT):

  • 13:00 - ANZ Commodity Prices m/m

 

 

To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.

Email:  

Marcus Phillips is the Affiliate manager at xe money transfer in Auckland. You can contact him here »

Daily exchange rates

Select chart tabs »

The 'US$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'AU$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'TWI' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥en' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥uan' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '€uro' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'GBP' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'Bitcoin' chart will be drawn here.
Loading...
USD 
NZD
End of day UTC
Source: CoinDesk

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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.