The NZDUSD opens lower 0.8095 this morning.
US manufacturing data, released overnight, missed expectations by a substantial margin. This event, combined with continuing concerns about emerging markets and recent data which suggests China's economy is losing momentum, has caused a sharp uptick in risk aversion.
The above added to the pressure on the NZD, which begun after the RBNZ caused some disappointed in not raising interest rates last week.
The Reserve Bank of Australia has an interest rate announcement at 4pm today. Rates are widely expected to remain at 2.5%,although there is some talk they may remove their current easing bias. We think, on balance, they will keep the easing bias for a moment.
Global equity markets were notably lower across the board on the day - Dow -1.7%, Nikkei -2.6%, Shanghai -1.1%, FTSE -0.7%, DAX -1.3%
The Gold Price jumped 1.2% to USD$1259 an ounce. Oil prices fell 0.2%.
The NZD opens at 0.8095 USD, 0.9240 AUD, 0.8980 CAD, 0.5985 EUR, 0.4965 GBP, & 81.85 JPY.
ANZ Commodity Price Index will be released at 1:00pm today.
The Reserve Bank of Australia interest rate decision is scheduled for 4:30pm.
Email:
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.