The NZDUSD opens at 0.6576 (mid-rate) this morning.
The NZD has continued to under-perform following yesterdays disappointing Fonterra and employment data releases.
Overnight the raft of Services PMI numbers out of the UK, Euro-zone and the U.S. were all roughly in-line with expectations as was the U.S. ADP Non-Farm Employment (182k vs.183k) while the U.S. Trade Balance printed stronger than expected (-40.8b vs. -42.7b).
Following on from last week’s surprisingly “hawkish” FOMC statement Fed Chair Janet Yellen, testifying before the House Financial Services Committee has described the economy as “performing well” and confirmed that if, as they expect “ the economy continues to grow at a pace that is sufficient to generate further improvements in the labour market and to return inflation to our 2 percent target over the medium term” then December’s FOMC statement would be a “live” for a rate hike.
Global equity markets are mixed - Dow -0.46%, S&P 500 -0.52%, FTSE +0.46%, DAX -0.97%, CAC +0.25%, Nikkei +1.30% Shanghai +4.31%.
Gold prices continue to slide down $7 to $1109 an ounce, WTI Crude Oil has given back yesterday’s gains currently down 3.5% at $46.20 a barrel.
Indicative mid-rate pricing:
NZDUSD 0.6576 -1.8%
NZDEUR 0.6056 -0.8%
NZDGBP 0.4278 -1.5%
NZDJPY 80.01 -1.2%
NZDAUD 0.9202 -1.1%
NZDCAD 0.8675 -0.8%
Upcoming Data releases (NZST):
No local data today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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