The NZDUSD opens markedly higher at 0.8740 this morning.
The EUR rallied to an 8-week high against the USD on bullish Euro-zone data. This helped to push the NZDUSD up to 0.8775 overnight - a level last seen in August 2011.
The USD continues to struggle as US interest rates remain anchored across the curve at relatively unattractive levels for investors. There is a view in the market that the USD will not be able to mount a meaningful rally until this situation changes.
Prices at this morning's Fonterra Global Dairy Trade auction dropped 1.1%, on top of the 2.6% fall the previous sale. However, volume of goods sold increased.
The Reserve Bank of Australia kept interests at 2.50% yesterday, and reiterated outlook was for a period of steady rates.
The RBNZ Governor Wheeler is scheduled to give a speech on the importance of dairy to NZ, and Q1 NZ Employment data hits the tapes at 10:45am.
Global equity markets were lower on the day - Dow -0.7%, Nikkei -0.2%, Shanghai 0.0%, FTSE -0.4%, DAX -0.7%
Gold prices eased 0.2% to USD$1307. Oil prices fell by 0.6%.
The current indicative mid-rates are:
NZDUSD 0.8740
NZDEUR 0.6275
NZDGBP 0.5150
NZDJPY 88.90
NZDAUD 0.9345
NZDCAD 0.9515
NZ Employment Data for Q1 will be released at 10:45an.
Australian Retail Sales will be released at 1:30pm, followed by a speech from US Fed Chairperson overnight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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