The NZDUSD opens lower at 0.8640 this morning, having initially rallied stronger yesterday evening. However, it was unable to break above recent ranges.
The NZ budget has minimal impact on the NZD. The budget itself was well-received and in line with what had been previously signaled.
The EUR fell to 11-week lows against the USD after subdued euro zone inflation and economic growth boosted the probability the European Central Bank will ease monetary policy once again.
The data was mixed from the US overnight. US weekly jobless claims numbers and consumer prices pointed to firming economic growth, while US factory output (falling at its steepest rate in 18 months), disappointing capacity utilization and home builder sentiment figures indicated the US economy is not yet out of the woods.
Global equity markets were lower on the day - Dow -1.1%, Nikkei -0.8%, Shanghai -1.3%, FTSE -0.6%, DAX -1.0%
Gold prices dropped 0.8% to USD$1295. Oil prices rose by 0.2%.
The current indicative mid-rates are:
NZDUSD 0.8640
NZDEUR 0.6300
NZDGBP 0.5145
NZDJPY 87.75
NZDAUD 0.9235
NZDCAD 0.9400
There is no data scheduled on the domestic calendar today.
US Fed Chair Janet Yellen gives a speech at 11am NZ time today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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