The NZDUSD opens sharply higher at 0.8010 this morning.
Friday night’s US non-farm payroll employment figures disappointed. The headline job creation figures were only slightly lower than expected, however there were downwards revisions to prior months numbers. The unemployment rate fell to 7.3% from 7.4% but this was primarily due to discouraged unemployed giving up the job search.
The USD slumped across the board in response to the US employment data, and the NZD jumped back above 0.8000 – a level last seen 3 weeks ago. Many in the market still expect the US Federal Reserve to begin to taper its massive bond-buying program in September, but it is far from a foregone conclusion.
Commodity prices rose on the weak USD and fears of a military strike on Syria, as US President Obama continues to lobby support for action.
The AUDUSD spiked 30 points higher after Aussie election result - change of Government to the conservative Liberal Nationals.
Emirates team NZ just won the 3rd race of the America’s Cup final series.
Global equity markets were mixed on the day – Dow -0.1%, Nikkei -1.5%, Shanghai +0.7%, FTSE +0.2%, DAX +0.5%
The Gold Price was jumped 1.5% to USD$1391 an ounce. Oil prices rose 0.8% and base metal prices were higher on the day.
The NZD opens at 0.8010 USD, 0.8700 AUD, 0.6085 EUR, 0.5125 GBP, & 79.85 JPY.
NZ quarterly Manufacturing Sales data will be released at 10:45am.
ANZ Job Ads & Home Loans data from Australia, and Chinese Inflation numbers, all hit the tapes at 1:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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