The NZDUSD opens at 0.8500 this morning.
The USD rose after the closely watched US non-farm payroll employment numbers, which came in on forecast, reinforced expectations of a steady recovery in their economy. The USD initially weakened on the payrolls release which pushed the NZDUSD to a 0.8550 high before retreating.
Chinese trade surplus was released Sunday. The headline numbers exceeded expectations; however the import component numbers were weak.
RBNZ monetary policy meeting will take place on Thursday. Market expectations are for the OCR to be increased by 0.25% to 3.25% - most focus will be on the accompanying statement for indication on the pace of future rate hikes and on the NZD.
Global equity markets were mostly higher on the day - Dow +0.6%, Nikkei -0.0%, Shanghai -0.7%, FTSE +0.7%, DAX +0.5%
Gold prices ended little changed at USD$1,252 overnight. Oil prices dropped 0.2%.
The current indicative mid-rates are:
NZDUSD 0.8500
NZDEUR 0.6225
NZDGBP 0.5055
NZDJPY 87.15
NZDAUD 0.9100
NZDCAD 0.9285
Nothing is scheduled on the domestic data calendar today.
It is Queens Birthday holiday in Australia.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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