The NZDUSD opens at 0.8375 this morning.
The NZD bounced from the lows after yesterday’s release of Chinese manufacturing data gave further signs of economic stabilisation. However, the NZD could not keep pace with the appreciation of the AUD – NZDAUD fell back from the 0.8900 level.
The path of US stimulus tapering remains data-dependent. Adding to the fiscal uncertainty is the looming US debt ceiling limit and possible government shutdown.
The strong NZD will be a cause of concern for the RBNZ, particularly if the very buoyant housing market forces them to raise interest rates.
Global equity markets were mostly lower on the day – Dow -0.3%, Nikkei -0.2%, Shanghai +1.6%, FTSE -0.6%, DAX -0.5%
The Gold Price fell 0.4% to USD$1320 an ounce. Oil dropped 1.0% and base metal prices were mixed on the day.
The NZD opens at 0.8375 USD, 0.8870 AUD, 0.8615 CAD, 0.6205 EUR, 0.5220 GBP, & 82.75 JPY.
There is no data on the domestic calendar today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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