The NZDUSD opens at 0.7370 this morning.
Yesterday’s NZ employment data was solid, despite the uptick in the unemployment rate, and the RBNZ Governor Wheeler did not mention any new macro prudential tools to cool the property market during his speech in Christchurch, although he did reiterate the NZD remains overvalued.
The USD recovered from the previous day’s losses and optimism of a possible Greek debt deal eased – these factors weighed on the NZD.
Overnight, China’s central bank announced it was making more money available for lending in an attempt to stimulate its economy which has been growing more slowly they desired.
Friday night’s US non-farm payroll employment numbers are the markets primary focus in the coming days.
Global equity markets were mixed on the day – Dow +0.4%, Nikkei +2.0%, Shanghai -1.0%, FTSE-0.2%, DAX +0.2%.
Gold prices firmed to USD$1,265. Oil prices fell to USD$49.42.
The current indicative mid-rates are:
NZDUSD 0.7370
NZDEUR 0.6455
NZDGBP 0.4845
NZDJPY 86.55
NZDAUD 0.9495
NZDCAD 0.9275
There is no data on the domestic calendar today.
Australian Retail Sales hit the tapes at 1.30pm, followed by US Trade Balance and a Bank of England interest rate decision tonight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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