The NZDUSD has edged higher to .6362 (mid-rate) this morning.
The Kiwi is up against the USD after data overnight revealed a 0.1 percent dip in US Consumer prices (CPI) from the previous month.
This data comes as the Federal reserve begins a two day policy setting meeting, culminating in tomorrow mornings (NZ time) US Interest rate decision. Currently the US Financial markets are pricing in 29 percent chance of the first interest rate increase since 2006.
The Chinese equity market finished up nearly 5% last night – all of the gains coming in the last hour of trade, which suggests intervention from Beijing.
The Aussie dollar jumped on this buoyant China sentiment, seeing NZDAUD reach 3½ week lows of .8828 briefly.
Watch out for the NZ Q2 GDP growth number at 10.45am today.
Global equities were up across the board - Dow +.84%, S&P 500 +.87%, FTSE +1.49%, DAX +0.38%, CAC +1.67%, Nikkei +0.81%, Shanghai +4.67%.
Gold prices were up 1.5%, trading at $1119 an ounce, WTI Crude Oil is up a fraction to $44.60 a barrel.
Indicative mid rates:
NZDUSD 0.6362 0.1%
NZDEUR 0.5637 0.4%
NZDGBP 0.4107 -0.6%
NZDJPY 76.71 0.6%
NZDAUD 0.8841 -0.6%
NZDCAD 0.8387 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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