The NZDUSD is lower again this morning and opens at 0.8200.
The NZDUSD hit a fresh 2-month low of 0.8182 overnight, and is within 30 points of the lowest level seen in 6-months.
The USD continued to strengthen across the board, with the USDJPY hitting a new 4 ½ year high, on economic optimism and another new record high in the US equity indices.
US import prices dropped in April due to falling oil prices – this is positive for household finances and will also help to keep inflationary pressures at bay.
Better than expected euro-zone industrial production figures was offset by deteroriating German economic sentiment.
Australian budget was released last night. In October they were expecting an AUD$1.5 billion surplus, but they are now forecasting an AUD$18 billion deficit!
The AUDUSD hit a new 11-month low of 0.9877, while the NZDAUD remained in familiar range.
Global equity markets were mostly higher, although the Shanghai index was a notably exception in falling 1.5% on poor factory output data and fears of slower growth.
Gold prices fell for the 4th consecutive session and is sitting at USD$1425 an ounce, while Copper prices dropped 2%.
The NZD opens at 0.8200 USD, 0.8285 AUD, 0.6335 EUR, 0.5385 GBP, & 83.85 JPY.
There is no data scheduled on the domestic calendar today.
There is a plethora of data from the US tonight, including Producer Price Index, Industrial Production, and Capacity Utilisation figures.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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