The NZDUSD opens lower at 0.7854 this morning, after a volatile night.
The NZD continued to trend higher yesterday after the release of the US Federal Reserve meeting minutes. The NZDUSD peaked at 0.7970, before dropping sharply.
Euro zone trade balance data disappointed last night and the European Central Bank Chief suggested the euro-zone economy recovery was losing momentum and that inflation was “excessively low”. This helped the USD strengthen and pressured the NZD.
Global equity markets were mostly lower on the day - Dow -1.8%, Nikkei -0.8%, Shanghai +0.1%, FTSE-0.8%, DAX +0.1%
Gold prices gained $9 to USD$1225. Oil prices fell by 1.9% to USD$85.69.
The current indicative mid-rates are:
NZDUSD 0.7854
NZDEUR 0.6190
NZDGBP 0.4871
NZDJPY 84.65
NZDAUD 0.8952
NZDCAD 0.8769
There is no data scheduled on the domestic calendar today.
There is some Fed-speak tonight and a G20 meeting over the weekend.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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