By Dan Bell
The NZD/USD opens lower at 0.8290 this morning.
The NZD rose to the high of 0.8349 overnight on the back of stronger AUD, after the release of encouraging Australian GDP data.
The market has now pushed back expectations of any near term rate cuts in Australia.
The EUR/USD fell on fears the European Central Bank may signal future interest rate cuts at its policy setting meeting tonight.
The rates as set by the ECB are currently 0.75%, and any cut would be a sure sign things are not getting any better rapidly enough in the euro-zone. This pulled the NZD/USD down from the overnight high.
US ADP employment data, released last night, was encouraging ahead of the highly influential US non-farm payroll figures to be released Friday evening.
Other data indicated the US economy expanded at a modest to moderate pace.
The US Dow Jones index squeezed out gains to make another new all-time high.
Gold price rose marginally to USD$1577 an ounce. Copper and base metal prices fell across the board.
World equity markets were little changed, with the exception of the Asia bourses which rose between 1% and 2.1%.
The NZD opens at 0.8290 USD, 0.8095 AUD, 0.6380 EUR, 0.5510 GBP, & 77.90 JPY.
There is no data scheduled on the domestic calendar today.
Australian Trade Balance will be released at 1:30pm, followed by a Bank of England and European Central Bank interest rate meetings tonight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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