The NZDUSD opens at 0.7520 (mid-rate) this morning.
The NZDUSD is back above 0.7500 after the U.S. Retail Sales came in weaker-than-expected and the IMF lowered the U.S. economic growth forecast for this year to 3.1% from 3.6%. The projection for next year was also lowered to 3.1 percent from 3.3 percent.
The U.S. Retail Sales rebounded in March following three straight monthly declines, but failed to reach the market estimate. The report said retail sales climbed by 0.9% (expected +1.1%) in March following a revised 0.5 percent decrease in February.
The IMF retained the World Growth forecast for this year at 3.5% and upgraded its 2016 forecast to 3.8% from 3.7% but lowered its forecast for economic growth in the U.S.
Today’s China data releases which includes Q1 GDP will dictate direction for the NZD ahead of tonight’s GDT dairy auction.
Global equity markets remain mixed - Dow +0.4%, Nikkei +0.02%, Shanghai +0.34%, FTSE +0.16% DAX -0.90%, CAC -0.69%
Gold prices continue to fall currently down $6 at $1192, Oil (WTI) has gained 2.4% trading at $53.16
The current indicative mid-rates are:
NZDUSD 0.7520
NZDEUR 0.7060
NZDGBP 0.5088
NZDJPY 89.80
NZDAUD 0.9858
NZDCAD 0.9372
Domestic data releases today
10:45 - FPI m/m
14:00 - CNY GDP q/y
14:00 - CNY Industrial Production y/y
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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