The NZDUSD opens lower at 0.7835 this morning.
The NZDUSD began yesterday under pressure after the minutes from the US Federal Reserve’s July policy meeting gave few clues about the timing of stimulus tapering, although many believe they will start in September.
The NZD managed to bounce after the release of Chinese manufacturing data which showed a small expansion, when a contraction was forecast. The NZD uptick was short-lived with the NZDUSD hitting a 2 ½ week low of 0.7807 overnight - it has fallen over 3 cents since Monday.
The AUD, which is very sensitive to China economic data, jumped higher and stayed there after the Chinese manufacturing release. The NZDAUD dropped close a 1-month low of 0.8670 as a consequence.
US data, released overnight, was mixed. However, the USD firmed as US 10-year Treasury yield set a fresh 2-year high (2.94%).
Global equity markets were mostly higher the day – Dow +0.4%, Nikkei -0.4%, Shanghai -0.2%, FTSE +0.9%, DAX +1.4%
The Gold Price rose 0.7% to USD$1375 an ounce. Oil rose 0.1%, and base metal prices were mixed on the day.
The NZD opens at 0.7835 USD, 0.8695 AUD, 0.5865 EUR, 0.5025 GBP, & 77.30 JPY.
There is no data on the domestic calendar today.
The Jackson Hole central bankers meeting begins today in the US, followed by UK GDP data, & US New Home Sales figures.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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