The NZD/USD opens around 0.8310 this morning after a choppy night across global markets.
Against the main cross rates the NZD is at current interbank mid rates: 0.8784 AUD, 0.6183 EUR, 0.5162 GBP, 81.26 JPY, 0.8687 CAD.
The European Central Bank cut interest rates overnight to 0.25%. ECB President Draghi noted the Euro zone may experience a prolonged period of low inflation. The EUR is broadly weaker as a result.
US Q3 GDP was much better than expected at +2.8% versus market consensus of +2% which has increased earlier Fed tapering expectations and strengthened the US Dollar.
Global stocks and commodities are generally weaker overnight with the S&P 500 down 1.1%. Gold is down 0.9% and oil has fallen 0.76%.
Twitter listed on the NYSE overnight and opened at 45.10 up 73% from the $25 initial public offering price, which values the social messaging company at over US$25 billion!
Not much to report from NZ today. In Australia we get the RBA Monetary Policy Statement at 1:30pm. From China we get Trade Balance numbers at some stage this afternoon and a raft of data over the weekend including CPI, Industrial Production and Retail Sales.
The focus this evening will be on the US Employment Report where jobs growth is expected to be around 126K and the unemployment rate at 7.3%. Anything better than this will provide further support to the US Dollar and put pressure on the Kiwi as the market positions for earlier tapering.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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