The NZDUSD opens lower at 0.8450 this morning.
The NZD traded lower yesterday after the release of disappointing Australian Building Approvals which triggered AUD selling - this spilled over to the NZD.
The NZD remained under pressure overnight as the EUR fell due to slower than expected euro-zone manufacturing numbers and subdued German inflation.
The USD rose to a near 2-month high against a basket of currencies from its main trading partners.
Chinese manufacturing figures and the statement from the Reserve Bank of Australia interest rate meeting hit the tapes just after lunch.
Either could spark some markets volatility.
Global equity markets were higher on the day - Dow +0.2%, Nikkei +2.1%, Shanghai +0.1%, FTSE +0.3%, DAX +0.1%
Gold prices dropped 1.0% to USD$1243 overnight, and as the sell-off continues. Oil prices fell 0.5%.
The current indicative mid-rates are:
NZDUSD 0.8450
NZDEUR 0.6215
NZDGBP 0.5045
NZDJPY 86.55
NZDAUD 0.9140
NZDCAD 0.9215
NZ Overseas Trade Index will be released at 10:45am today.
Australian Retail Sales figures hit the tapes at 1:30pm. This will be followed by Chinese Manufacturing Data at 1:45pm, and the Reserve Bank of Australia interest rate decision at 4.30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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