The NZDUSD opens at 0.8030 this morning.
Friday’s Chinese data was generally better than expected - Industrial Production +9.7% (versus +9.0% expected), New Loan 699 billion Yuan (640 billion expected), Retail Sales +13.2% (+13.5% forecast). This helped to boost so-called ‘commodity currencies’ such as the NZD and AUD.
US wholesale inventories disappointed, and speculators pared back their long USD positions for a third consecutive week. The USD weakened across the board, which also pushed the NZD to an 0.8050 high.
There is still considerably uncertainty on the exact timing on when the US Fed will begin to scale back its massive bond-buying program.
Global equity markets were mixed – US equity markets fell circa 0.4%, while other major markets rose on the day.
The Gold Price rose to USD$1315 an ounce. Oil gained 1.5% while base metals prices also increased on the day.
The NZD opens at 0.8030 USD, 0.8735 AUD, 0.6025 EUR, 0.5180GBP, & 77.30 JPY.
NZ Food Price Index will be released at 10:45am.
Japanese GDP figures hit the tapes at 10:50am, and US Federal Budget early tomorrow morning.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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