The NZDUSD opens steady at 0.8520 this morning.
The NZD traded in a relatively narrow range overnight ahead of tonight’s Fonterra Global Dairy Auction.
The ANZ Commodity Index, release yesterday, fell 2.4%, although this had a limited impact on the NZD.
Portugal reached a bailout agreement to prevent the collapse of its largest listed bank. This has helped to improve the tone in the global financial markets.
It is a big week for central bank interest rate meetings. The Reserve Bank of Australia has a rate decision at 4:30pm today, followed by European Central Bank and Bank of England rate decisions Thursday night.
The ECB meeting is likely to attract the most interest as they are moving towards policy loosing, while the US Fed and others are inching towards an eventual tightening.
Global equity markets were mixed on the day – Dow +0.5%, Nikkei -0.3%, Shanghai +2.0%, FTSE-0.0%, DAX -0.6%.
Gold prices fell 0.4% to USD$1,288. Oil prices gained +0.7%.
The current indicative mid-rates are:
NZDUSD 0.8520
NZDEUR 0.6350
NZDGBP 0.5055
NZDJPY 87.40
NZDAUD 0.9135
NZDCAD 0.9300
There is no data scheduled on the domestic calendar today.
Australian Trade Balance & Reserve Bank of Australia interest decision will hit the tapes this afternoon.
----------------------------------------------------------
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.