The NZDUSD opens at 0.8265 this morning.
The US ADP employment survey, a precursor to Friday night?s closely watched non-farm payroll employment release, showed job creation exceeded expectations in December. The USD strengthened, pulling the NZDUSD lower, in response.
The minutes from the latest Federal Reserve interest rate meeting indicated they were happy to taper their bond purchasing program as the US employment situation was improving.
Locally, it was reported this morning that the huge French food group Danone was preparing legal proceeding against Fonterra to obtain compensation for harm suffered in response to the milk powder 'contamination' scare. Danone also stated it is terminating its existing supply agreement with Fonterra. This has placed some downwards pressure on the NZD.
Global equity markets were mixed on the day - Dow -0.5%, Nikkei +1.9%, Shanghai +0.2%, FTSE -0.5%, DAX -0.1%
The Gold Price was dropped 1.0% to USD$1226 an ounce. Oil prices were marginally lower.
The NZD opens at 0.8265 USD, 0.9275 AUD, 0.8930 CAD, 0.6085 EUR, 0.5020 GBP, & 86.55 JPY.
NZ Building Approvals & ANZ Commodity Price Index figures will be released at 10:45am.
Australian Building Approvals & Retail Sales hit the tapes at 1:30pm, followed by Chinese CPI at 2:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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