The NZDUSD opens at 0.8345 this morning.
The NZDUSD fell as the USD strengthened across the board, helped by comments from US Fed officials which suggested the bond-buying program tapering was much closer than many thought.
The reduction in monetary stimulus could be as early as next month if US employment data continued to improve. However, the Fed may still take its time as inflation remains low – a majority of economists expect tapering to begin in December.
Gold, oil, and commodity prices all fell Friday, and global equity markets were under pressure.
Angela Merkel’s Christian Democractic bloc won an overwhelming endorsement from German voters on the back of an unemployment rate near 20 year lows. Merkel is now set for a 3rd term as chancellor.
The NZDAUD approached 2 month highs as the rate traded above 0.8900.
Global equity markets were mostly lower on the day – Dow -1.2%, Nikkei -0.2%, Shanghai +0.2%, FTSE -0.4%, DAX -0.2%
The Gold Price plunged 2.5% to USD$1326 an ounce. Oil dropped 1.1% and base metal prices fell around 2% on the day.
The NZD opens at 0.8345 USD, 0.8910 AUD, 0.8610 CAD, 0.6160 EUR, 0.5215 GBP, & 82.75 JPY.
There is no data on the domestic calendar today.
The HSBC Flash Manufacturing PMI figures hit the tapes at 1:45pm, followed by similar Manufacturing data from the euro-zone and the US.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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