The NZDUSD opens at 0.8345 this morning, while the NZDAUD hit an 8-year high of 0.9475 overnight.
The AUDUSD got smashed in excess of 100 points lower yesterday after the release of very disappointing December employment figures. The NZDUSD was only dragged down a moderate amount by the Aussie data, resulting in the NZDAUD hitting 0.9475 - a level last seen in December 2005!
The NZ Trade-weighed Index (TWI) established a fresh 9-month high, and is less than 0.5% away from the all-time high.
The RBNZ is expected to be the first developed nation to raise interest rates, however the exceptionally strong NZD will be giving the RBNZ pause for thought (if not more than a few headaches).
US data came in close to expectations. US Consumer Price Index (CPI) in December recorded their largest increase in 6-months, but underlying inflation remains tame, while the weekly jobless claims numbers were near the forecast figures. The USD slid a little in response.
Global equity markets were mostly lower on the day - Dow -0.4%, Nikkei -0.4%, Shanghai +0.1%, FTSE -0.1%, DAX -0.2 %
The Gold Price was steady at USD$1241 an ounce. Oil prices rose marginally.
The NZD opens at 0.8345 USD, 0.9370 AUD, 0.9115 CAD, 0.6135 EUR, 0.5105 GBP, & 87.10 JPY.
There is no data on the domestic calendar today.
UK Retail Sales, US Building Permits, Industrial Production, & Consumer Sentiment are the most significant releases scheduled tonight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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1 Comments
Hello AUD/NZ
We are at an 8 year low
You would think over sold an retrace after 1000 pip move.
Sitting around 1.06
I have shorts to 1.05 but but will it hold.
There has been talk about AUD/US 0.85 even 0.83
Traders will be thinking is it time for longs
Must be getting close now,be great to trade this back to 1.15
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