By Dan Bell
The NZD/USD opens around 0.8030 this morning relatively unchanged from yesterday.
The significant lift in sentiment following EU Summit comments on Friday has waned as it emerged that Finland and the Netherlands want to block the use of ESM bailout funds in secondary markets.
Weaker economic data from the US has added further doubt to the strength of the US economy. US ISM Manufacturing Data for June slipped into negative territory for the first time since 2009.
The EUR/USD dropped back into the low 1.25’s. The AUD/USD has held recent gains over 1.02.
European equities were mostly higher on the day. US stocks finished mixed with the S&P 500 up 0.25%.
The NZD is generally higher against most major currencies and opens at current indicative interbank mid rates: 0.7840 AUD, 0.6380 EUR, 0.5110 GBP, 63.80 JPY.
Not much to report from NZ today. The big focus will be on the Reserve Bank of Australia at 4:30pm NZT. We are not expecting any change to the cash rate at 3.5% but comments will be key with the market still pricing in at least another 50bps of rate cuts this year. We also get Non Manufacturing PMI Data from China at 1pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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