The NZDUSD opens at 0.8575 this morning.
The NZD traded to a 0.8540 low overnight as the USD climbed after the minutes of the US Federal Reserve's last policy meeting showed the Fed is laying the groundwork for eventually raising interest rates. They indicated this was simply "prudent planning" and does not indicate any near term rate hike.
The EUR continued to be weighed down by expectations of further monetary stimulus by the European Central Bank.
The GBP rose to a 5.5 high on a trade-weighted basis as the UK economy is showing positive signs. The NZDGBP fell to a 3-week low of 0.5060.
China's HSBC Manufacturing PMI will be the market's primary data focus today.
Global equity markets were higher on the day - Dow +1.0%, Nikkei -0.2%, Shanghai +1.0%, FTSE +0.3%, DAX +0.6%
Gold prices fell by 0.2% to USD$1291. Oil prices gained 0.7%.
The current indicative mid-rates are:
NZDUSD 0.8575
NZDEUR 0.6265
NZDGBP 0.5075
NZDJPY 86.95
NZDAUD 0.9275
NZDCAD 0.9360
NZ Inflation Expectations will be released 3:00pm today.
Chinese Manufacturing data hit the tapes at 1:45pm
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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