The NZDUSD opens higher at 0.8475 this morning.
Yesterday’s NZ employment data came in somewhat mixed. The unemployment rate dropped to 5.6% (from 5.9%), however the growth in numbers employed grew at a smaller than expected 0.4% and the participation rate disappointed. The NZDUSD subsequently fell to a 2-month low of 0.8425, having suffered a fall earlier Wednesday morning after further declines in Fonterra’s Global Dairy Trade auction.
The EURUSD hit a 9-month low after data showed that Italy slipped into recession in Q2 and German industrial orders fell at their quickest pace in nearly 3-years in June.
The global markets are nervous of an escalation in military conflict as 20,000 Russia troops amass on the Ukrainian eastern border. There is speculation Moscow could use humanitarian concerns as an excuse to move into the region. Russia has also ordered restrictions of food imports from countries that have imposed sanctions.
The Bank of England and European Central Bank both have interest rate policy meetings tonight.
Global equity markets were mostly lower on the day – Dow +0.1%, Nikkei -1.1%, Shanghai -0.3%, FTSE-0.7%, DAX -0.7%
Gold prices gained 1.2% to USD$1306. Oil prices gained +0.2%.
The current indicative mid-rates are:
NZDUSD 0.8475
NZDEUR 0.6335
NZDGBP 0.5030
NZDJPY 87.45
NZDAUD 0.9065
NZDCAD 0.9250
There is no data scheduled on the domestic calendar today.
Australian Employment Data hits the tapes at 1:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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