The NZDUSD opens at 0.6330 (mid-rate) this morning.
The NZD is little stronger this morning benefiting from a jump in dairy prices.
The GDT index climbed to US$2568 a tonne the third consecutive increase since Fonterra made the decision to reduce the volume of milk powder on offer.
Fonterra is committed to cutting back the amount of milk powder it will put up for auction over the next year and last night’s volume was 43% down on the same auction last year.
Overnight the U.S. economic data releases will add further pressure on the Fed to delay hiking interest rates come Friday with the U.S retail sales (+0.2% vs. +0.3%), industrial production (-0.4% vs. -0.2%).and the Empire State Manufacturing Index (-14.7 vs. -0.5) all falling short of economist’s estimates.
German economic confidence weakened for the sixth consecutive month dropping a further 12.1 points since August 25th and is now sitting at a 10-month low.
The UK CPI y/y fell back to zero in August (as expected) following a 0.1% rise in July with economists expecting it to remain at zero for September and October.
Global equity markets with the Shanghai being the only exception are broadly higher - Dow +1.54%, S&P 500 +1.36%, FTSE +0.87%, DAX +0.56%, CAC +1.13%, Nikkei +0.34%, Shanghai -3.52%.
Gold prices are down $5 trading at $1103 an ounce, WTI Crude Oil is up 1.4% over the past 24hrs currently trading at $44.65 a barrel.
Indicative mid rates:
NZDUSD 0.6360 0.5%
NZDEUR 0.5616 0.4%
NZDGBP 0.4130 0.7%
NZDJPY 76.28 0.4%
NZDAUD 0.8892 0.2%
NZDCAD 0.8388 -0.1%
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.