The NZDUSD opens slightly lower at 0.8690 this morning.
The NZDUSD has been confined to a tight 30 point range the past 24 hours.
NZ's June migration gains were the second highest on record and annual gains were near 11-year highs, according to data released yesterday. The NZD was little moved in response.
Investor anxiety about escalating tensions in Ukraine and Gaza remains, although this is not currently strong enough to move the markets out of their recent ranges.
The RBNZ is widely expected to increase the OCR by 0.25% to 3.50% on Thursday.
The domestic markets are eagerly awaiting the accompanying statement for indications of the pace and timing of any future rate hikes - a slower pace of future rate increases may place further downward pressure on the NZD.
Global equity markets were down on the day - Dow -0.3%, Nikkei -1.0%, Shanghai +0.1%, FTSE-0.3%, DAX -1.1%
Gold prices rose 1% to USD$1312. Oil prices gained 0.5%.
The current indicative mid-rates are:
NZDUSD 0.8690
NZDEUR 0.6425
NZDGBP 0.5090
NZDJPY 88.10
NZDAUD 0.9265
NZDCAD 0.9325
There is no data scheduled on the domestic data calendar today.
US inflation and existing home sales hit the tapes tonight.
----------------------------------------------------------
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
----------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.