The NZDUSD opens lower at 0.8445 this morning.
The NZDUSD traded above 0.8500 for the first time since October as the EURUSD hit a 2.5 year high prior to the US non-farm payrolls release. The NZDJPY hit a new 5-year high of 87.80.
The payrolls numbers showed US job growth was up strongly, easing fears of an abrupt slow down in the US economy, and reinforcing the view the US Federal Reserve will continue to taper its bond-buying stimulus program. The NZDUSD fell sharply in response.
A shockingly bad China Trade Balance ($23 bio deficit versus $14.5 bio surplus expected), which hit the tapes Saturday afternoon, has also depressed the NZD on the open this morning.
The Ukrainian crisis seems no closer to a resolution. Russian President Putin rebuffed a warning from US President Obama over Moscow's military intervention in Crimea. Its impact on the financial markets has come and gone, at least for the moment.
RBNZ interest rate decision (0.25% hike expected) on Thursday will be the major domestic focus this week.
Global equity markets were mixed on the day - Dow +0.2%, Nikkei -0.4%, Shanghai -0.2%, FTSE -1.1%, DAX -2.0%
Gold prices fell 0.8% to USD$1339. Oil prices rose 0.8%.
The current indicative rates are:
NZDUSD 0.8445
NZDEUR 0.6085
NZDGBP 0.5045
NZDJPY 86.90
NZDAUD 0.9345
NZDCAD 0.9355
NZ quarterly Manufacturing Sales data will be released at 10:45am.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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