By Dan Bell
The NZD/USD opens around 0.81 this morning after trading to a high of 0.8139 on Friday night- off lows of 0.8080 on Friday afternoon.
The NZD came under pressure on Friday after China released much worse than expected economic data.
Figures on Friday showing July exports rose just 1% (exp +8%) from a year ago and that new loans were at a 10-month low added to data on Thursday showing factory output rising at its lowest pace in 3 years.
Most analysts see China’s central bank easing monetary policy again - inflation as measured by CPI came in at a 30 month low last week - which will give them plenty of room to ease further.
One of the ECB voting members came out with comments that were against them restarting their sovereign bond buying program - a little reminder the EU debt crisis is far from resolved.
Stocks finished marginally higher in the US with the S&P 500 up 0.22%. Commodities were under pressure with the CRB Index down 0.98%.
The NZD was generally weaker against most major crosses for the week following weaker NZ Q2 employment numbers. We open this morning at 0.7690 AUD, 0.66 EUR, 0.5180 GBP, 63.45 JPY.
From NZ we get Food Prices today. Not much to report elsewhere. Tomorrow we get NZ Q2 Retail Sales.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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