The NZDUSD opens at 0.6586 (mid-rate) this morning.
As expected with Fonterra reducing its whole milk powder volume by 33.5% the overall price index rose 14.8% following 10 consecutive falls dating back to March.
On the back of this announcement the NZDUSD gapped higher to touch 0.6600 before retracing to where we open this morning.
The overnight U.S data releases continued the trend of giving with one hand and taking away with the other as housing starts edged higher in July but building permits pulled back sharply.
The U.K. consumer price index rose unexpectedly in July, with economists expecting CPI to remain flat the GBP was given a boost as the official data showed consumer prices advanced 0.1% in July.
Investors will be keen to review tonight’s U.S Fed minutes for any insight into where the labour market conditions need to be before the Fed raises rates.
Global equity markets are broadly lower - Dow -0.25%, S&P 500 -0.34%, FTSE -0.37%, DAX -0.22%, CAC -0.27%, Nikkei -0.32%, Shanghai -6.15%.
Gold prices are holding steady at $1116 an ounce, WTI Crude Oil has climbed off its 6yr lows up 1.29% to $42.45 a barrel.
NZDUSD 0.6586 0.2%
NZDEUR 0.5973 0.6%
NZDGBP 0.4205 -0.3%
NZDJPY 81.92 0.1%
NZDAUD 0.8970 0.7%
NZDCAD 0.8602 0.0%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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