The NZDUSD opens higher at 0.7965 this morning.
Yesterday’s quarterly employment data was close to expectations. The unemployment rate rose by 0.2% to 6.4%, but this was due to an increase in the labour force participation rate, and the number of jobs in the economy actually rose by 0.4% for the quarter.
The USD was under selling pressure overnight on continuing concerns regarding the scope and timing of the US Fed’s eventual reduction in economic stimulus.
The JPY rose to a 7-week peak against the USD on expectations that Japanese investor will begin to repatriate overseas investment earnings. The NZDJPY fell to 76.35 and is nearing fresh 7-week lows.
The GBP jumped 0.9% versus the USD after the Bank of England Governor stated interest rates would not rise until unemployment fell below 0.7% - this is likely to be at least 3 years away.
Global equity markets were lower across the board – DOW -45, Nikkei -576 (-4%), Shanghai -0.7%, DAX -0.5%, FTSE -1.4%
The Gold Price gained 0.2% to USD$1286 an ounce. Oil dropped 0.8% while base metals prices were mixed.
The NZD opens at 0.7965 USD, 0.8850 AUD, 0.5970 EUR, 0.5140GBP, & 76.80 JPY.
There is no data scheduled on the domestics calendar today.
Australian employment data hits the tapes at 1:30pm, followed by Japanese monetary policy statement and Chinese Trade Balance in the afternoon.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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