The NZDUSD opens higher at 0.7835 this morning, in thin US Independence Day holiday affected markets.
The AUDUSD rallied, taking the NZD along for the ride, after the Reserve Bank of Australia said the markets had misinterpreted comments about their deliberations, which has caused the AUD to drop and enhanced expectations of more rate cuts. The NZDUSD nudged up towards 0.7850 region.
The EUR/USD fell overnight to 5-week lows after European Central Bank chief signalled it could cut interest rates further (they are currently 0.5% - a record low), and highlighted the downside risk to the euro zone economy.
The Bank of England left their rates at 0.5% overnight. The GBP/USD dropped when the BoE stated the current expectations of future rate hikes are not warranted by the state of the UK economy and could weigh on the growth and inflation outlook.
We don’t expect too much action in the markets today ahead of the tonight's release of the all important and closely watched US non-farm payrolls employment numbers – the calm before the storm!
Global equity market higher across the board, with the UK & Euro-zone indices up an impressive 3.1% & 2.9% respectively.
The Gold Price fell slightly USD$1249 an ounce. Oil and base metals prices eased.
The NZD opens at 0.7835 USD, 0.8565 AUD, 0.6065 EUR, 0.5195GBP, & 78.30 JPY.
There is no domestic data due today.
All focus on the tonight will be on the US non-farm payroll employment data.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
No chart with that title exists.
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.