By Dan Bell
The NZD/USD opens at 0.8255 ahead of this morning RBNZ rate decision and the announcement of a new pope.
Much better than expected US retail sales, released overnight, resulted in USD strength.
The USD index climbed to 7-month high against a basket of currencies, and has risen 4% so far in 2013, as evidence mounts that the US economy is picking up pace.
Conditions remain moribund in the euro-zone in comparison – the EUR/USD fell to 3-month lows.
The RBNZ interest rate decision and accompanying statement will be released at 9:00am.
Rates are almost certain to remain at 2.5%, however most interest will be upon the statement to see how the RBNZ weighs up the conflicting forces of the current drought with robust property markets and Christchurch rebuild stimulus. They may also mention the NZD being too high.
The new Pope is 76-year old Argentine Cardinal Jorge Mario Bergoglio. He will now be known as Francis I and is the first non-European Pope for over 1,000 year which reflects the fact that 42% of the world’s Catholics live in South America.
Gold price fell to USD$1589 an ounce. Base metal prices were mixed.
World equity markets were close to flat to 0.5% lower, although the Shanghai index fell 1.1%.
The NZD opens at 0.8255 USD, 0.8005 AUD, 0.6365 EUR, 0.5525 GBP, & 79.20 JPY.
RBNZ rate decision will be released at 9:00am. Australian employment data at 1:30pm
------------------------------------------------------------
To subscribe to our daily Currency Rate Sheet email, enter your email address here.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.