By Dan Bell
The NZD recovered ground overnight, starting this morning at 0.8285 against the USD, and gaining similar ground against most others.
Yesterday’s better than expected NZ Q2 GDP saw NZDUSD test 0.8300 before wilting on disappointing Chinese PMI data.
Europe didn’t buck the trend, with Eurozone PMI printing at 46 (vs. 47.2 last month), and French PMI reaching a three and a half year low at 44.1.
German PMI rose, but it wasn’t enough to reverse the general risk off mood.
Equities recovered to finish up largely unchanged after a sharp sell off early in the session for most. A range of Fed speakers were largely responsible, reaffirming their ultra loose monetary policy measures and stating that the US central bank should be able to maintain current settings until the unemployment rate reaches 5.5% (currently 8.3%).
Currently, NZDUSD 0.8285, NZDGBP 0.5110, NZDEUR 0.6390, NZDAUD 0.7940, NZDJPY 64.80.
NZ Visitor arrivals and Credit Card Spending is released this morning at 1045.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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