The NZDUSD opens at 0.7649 (mid-rate) this morning.
The NZDUSD spiked higher late in yesterday’s trading session with rumours of a large exporter buy order.
The NZDUSD traded to a high of 0.7660 with the NZDAUD posting a new post- float high of 0.9780.
The recent trend of disappointing U.S economic data continued when last nights U.S. existing home sales for February came in weaker than market expectations (4.88M vs. expected 4.91M).
In a speech to the Economic Club of New York Federal Reserve Vice Chairman Stanley Fischer stated that the FED should probably hike interest rates by the end of the year.
Whether it's going to be June or September, or some later date, or some date in between, will depend on the data, We've got two very positive numbers for the first quarter of 2015 and we're waiting for another one," he added, referring to the strong U.S. jobs reports from January and February.
Global equity markets are mixed - Dow +0.41%, Nikkei +0.99%, Shanghai +1.95%, FTSE +0.22% DAX -1.19%, CAC -0.65%.
Gold prices are higher currently trading at $1187 (+$5), Oil (WTI) has fallen slightly currently trading at $46.10 a barrel (-40cents).
The current indicative mid-rates are:
NZDUSD 0.7649
NZDEUR 0.6991
NZDGBP 0.5120
NZDJPY 91.68
NZDAUD 0.9718
NZDCAD 0.9566
Domestic data releases today:
14:45 - CNY HSBC Flash Manufacturing PMI
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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1 Comments
Another plausible cause, other than the RBNZ biting the bullet and covering its outstanding NZD ~2.5 billion short.is:
“We are wandering into uncharted territory that’s subject to uncertainty and mistakes,” said Erik Weisman, a Boston-based money manager at MFS Investment Management, which oversees $430 billion globally. He’s buying debt with longer maturities and increasing his allocation of top-quality government holdings to Australia and New Zealand, which have some of the highest yields in the developed world. Read more
But, when all is said and done the RBNZ governor's open mouth operations did draw attention to the opportunity.
The Reserve Bank is leaving the official cash rate on hold and has promised a "period of stability" for up to two years.
And Reserve Bank governor Graeme Wheeler again said the dollar was too high and needed to see a "substantial" fall. Read more
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