The NZDUSD opens lower at 0.7210 this morning.
All eyes on the RBNZ this morning after the NZD again traded lower overnight. USD strength was the main culprit which saw the NZD briefly trade below 0.7200.
Prior to that Chinese Industrial Output along with Investment and retail sales came in below analysts’ expectations in Jan and Feb suggesting more stimulus may be needed. This failed however to have any major effect on the currency markets.
NZD/AUD found support at 0.9500 but could be in for a volatile day with the RBNZ and Australian Unemployment numbers.
Monthly UK Manufacturing Production came in below expectations on low computer and electronic volumes. Output fell 0.5% after a 0.1% fall in December
Global equity markets mixed on the day – Dow +0.1%, Nikkei +0.3%, Hang Seng -0.7% FTSE+0.6%, DAX +2.66%.
Gold prices finished up 1.6 at USD$1,152. Oil finished -0.02 at $48.24.
The current indicative mid-rates are:
NZDUSD 0.7210
NZDEUR 0.6840
NZDGBP 0.4830
NZDJPY 87.50
NZDAUD 0.9510
NZDCAD 0.9190
Main events on Day
- RBNZ OCR announcement and Rate Statement 9:00am
- Australian Unemployment 1:30pm
Overnight
- US Retail Sales
- BOE Carney Speaks
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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