The NZDUSD opens lower at 0.7895 this morning.
The NZDUSD fell overnight, hit by strong US factory data, encouraging jobless claims and a USD rally after the European Central Bank chief said euro-zone interest rates will remain low for an extended period of time.
Chinese manufacturing data, released yesterday afternoon, came in better than expected. However, this provided little support for the NZD & AUD.
The NZDUSD touched a 2-week low of 0.7855, while the AUDUSD fell to 0.8910 – a level last seen a 33-months ago. The NZDAUD gave up some of its recent gains and dipped to 0.8810.
The markets are now poised for tonight’s US non-farm payrolls employment numbers.
Strong employment gains and a lower unemployment rate will be a firm signal that the US economy is recovering and the Fed is likely to begin tapering its huge USD$85 billion bond buying program before years end.
Less US stimulus could push interest rates higher, which would make the USD more attractive.
Global equity markets all made solid gains, with the major indices up between 0.8% & 2.4% on the day.
The Gold Price fell to USD$1310 an ounce. Oil jumped over 1.5% while base metals prices were generally higher.
The NZD opens at 0.7895 USD, 0.8835 AUD, 0.5975 EUR, 0.5225GBP, & 78.60 JPY.
There is no data on the domestic calendar today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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