The NZDUSD opens lower at 0.7745 this morning.
The USD made gains overnight, and NZDUSD fell, as generally positive US economic data reinforced expectations the US Federal Reserve is not far away from beginning to taper its stimulus measures.
US Factory Orders rose on the month and beat forecast levels – this was the latest piece of good US data.
The Fonterra auction conducted overnight was impressive. Prices rose 0.7%, which follows a 1.1% increase the previous auction.
The Reserve Bank of Australia held their interest rate meeting yesterday. They kept their cash rate at 2.75% and mentioned there is scope for further easing.
The RBA also mentioned the AUD remains too high (it has fallen further than the NZD) and can still fall further, and growth is a bit below trend.
The AUDUSD fell in response which dragged the NZDUSD down as well, while the NZDAUD nudged up towards 0.8500.
Global equity market were a little weaker on the day, although Japan’s & China’s main indices rose.
The Gold Price fell to USD$1240 an ounce.
The NZD opens at 0.7745 USD, 0.8470 AUD, 0.5970 EUR, 0.5110GBP, & 77.95 JPY.
No domestic data today.
Australian Retail Sales & Trade Balance hit the tapes at 1:30pm, while the RBA Governor speaks at 2.:55pm.
The US ADP non-farm payroll figures (the precursor to the more influential US non-farm payrolls numbers due Friday night), and trade balance numbers will be released overnight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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