The NZDUSD opens at 0.6642 (mid-rate) this morning.
The USD is weaker and US equities are rising with the likelihood that the Federal Reserve are about to cut interest rates increasing following Federal Reserve Chair Jerome Powell’s testimony to Congress.
Mr Powell told Congress that "uncertainties about the outlook have increased in recent months" and that ongoing “concerns about the strength of the global economy continue to weigh on the US outlook." Mr Powell also expressed concerns about the continued trade tensions between the US and China and although there was no commitment to cut interest rates these comments have increased market expectations for a rate cut at the end of July.
The release of the Fed’s minutes from last month’s monetary policy meeting are in line with Jerome Powell's remarks, with the Committee noting that additional monetary policy accommodation would be warranted in the near term, if incoming information showed further deterioration in the global outlook. Some of the voting members were also concerned that a continued shortfall in inflation risked a softening of inflation expectations that could slow the sustained return of inflation to the Fed's 2 percent target.
Crude oil prices have spiked after the Energy Information Administration reported a much larger than expected oil inventory draw for the week to July 5. The data showed stock piles were reduced by 9.5m barrels (exp 1.9m) leading to a 45 rise in West Texas crude.
Global equity markets are mixed, - Dow +0.26%, S&P 500 +0.36%, FTSE -0.08%, DAX -0.51%, CAC -0.08%, Nikkei -0.15%, Shanghai -0.44%.
Gold prices are up 1.1%, trading at $1,414 an ounce. WTI Crude Oil prices are sharply higher, up 4.3% trading at $60.37 a barrel.
Current indicative rates:
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- no local data today
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