The NZDUSD opens lower at 0.7460 this morning.
The RBNZ yesterday released comments they were consulting on the classification of residential investment lending causing an immediate 50 pt sell off against the USD. This theme continued overnight with broader USD strength, the NZD being the main under performer of the majors.
Overnight:
The main event was the ECB meeting where they left rates unchanged and confirmed asset purchases would begin Monday. EUR/USD trading to 11 year lows briefly touching below 1.100.
US Jobless Claims of 320k came in above the 295k consensus which analysts are blaming on poor weather.
Bank of England left rates on hold at 0.5%.
Global equity markets mainly up on the day – Dow +0.2%, Nikkei +0.3%, Hang Seng -1.1% FTSE+0.6%, DAX +1.0%.
Gold prices finished -0.4 % at USD$1,196. Oil finished at -0.6%.
The current indicative mid-rates are:
NZDUSD 0.7460
NZDEUR 0.6770
NZDGBP 0.4905
NZDJPY 89.80
NZDAUD 0.9620
NZDCAD 0.9340
Over night the main event risk is the US NON FARM EMPLOYMENT CHANGE
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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