The NZDUSD opens at 0.6674 (mid-rate) this morning.
Yesterday’s disappointing China data has seen the NZD pull back from its recent high of 0.6740.
Although the trade surplus printed ahead of economists estimates $60.34b vs. exp 48.2b, the continuing slide in exports down 3.7% in Sept from a year ago and a sharp drop in imports down 20.4% has seen global equity markets as well as both the NZD and AUD soften.
The overnight data releases will have only added to global risk with the U.K. once again entering into deflation (last seen in April) and German economic confidence dropping to a one-year-low in October hampered by the Volkswagen exhaust emissions scandal.
Today’s direction should be dictated by RBNZ Gov Wheelers speech at 9:10am followed by this afternoons CPI data release out of China.
Overnight, tonight investors will look to the Euro-zone Industrial Production, and U.S. Retail Sales for further guidance.
Global equity markets are broadly lower - Dow +0.09%, S&P 500 -0.44%, FTSE -0.45%, DAX -0.86%, CAC -0.97%, Nikkei -1.11%, Shanghai +0.17%.
Gold prices are holding steady currently trading at $1164 an ounce, WTI Crude Oil has fallen back below $47 a barrel currently trading at $46.80 (-0.5%)
Upcoming Data releases:
09:10 - RBNZ Gov Wheeler Speaks
14:30 - CNY CPI y/y
Indicative mid-rate pricing:
NZDUSD 0.6674 -0.7%
NZDEUR 0.5862 -0.9%
NZDGBP 0.4374 -0.1%
NZDJPY 79.80 -0.7%
NZDAUD 0.9178 0.5%
NZDCAD 0.8678 -0.7%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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