The NZDUSD opens slightly lower at 0.8635 this morning.
US data showed housing starts jumped in April and building permits hits their highest level in almost 6 years.
This helped to support the USD, and placed some downwards pressure on the NZD.
Global bond yields remain at very low levels.
While US yields stay anchored at close to 6-month lows, it will be difficult for the USD to make a sustained rally in the near term as investors do not see value there.
The NZD, however, continues to attract yield buyers as NZ interest rate levels and outlook are high (and rising) on a relative basis.
There is not much in the way of first-rate domestic data to get excited this week.
Global equity markets were mixed on the day - Dow +0.3%, Nikkei -1.4%, Shanghai +0.1%, FTSE +0.2%, DAX -0.3%
Gold prices dropped 0.2% to USD$1292. Oil prices rose by 0.6%.
The current indicative mid-rates are:
NZDUSD 0.8635
NZDEUR 0.6305
NZDGBP 0.5135
NZDJPY 87.70
NZDAUD 0.9215
NZDCAD 0.9380
NZ PPI (Producer Price Index) data will be released at 10:45am 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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