The NZDUSD opens at 0.6755 (mid-rate) this morning.
The RBNZ cut the overnight cash rate by 25 basis points as expected to 2.50%, initially the NZD went lower but then rallied 150 basis points throughout yesterday morning.
The Australian Employment data surprised the market posting 71.4k new jobs ahead of the negative 10k expected and better than the 56k from the previous month. The unemployment rate was down to 5.8% from 5.9% and ahead of the 6.0% expected.
The US unemployment weekly claims were posted overnight. In the week ending December 5, the advance figure for seasonally adjusted initial claims was 282,000, an increase of 13,000 from the previous week's unrevised level of 269,000. The 4-week moving average was 270,750, an increase of 1,500 from the previous week's unrevised average of 269,250. There were no special factors impacting this week's initial claims.
The US Federal Budget was a deficit of USD 64.6 billion a decrease USD 136.5 billion the previous month
The Swiss National Bank (SNB) is maintaining its expansionary monetary policy leaving interest rate on sight deposits unchanged at –0.75%.
The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy in order to meet the 2% inflation target and in a way that helps to sustain growth and employment. It was announced overnight that at its meeting ending on 9 December 2015, the MPC voted by a majority of 8-1 to maintain Bank Rate at 0.5%.
The UK’s deficit on trade in goods and services was estimated to have been £4.1 billion in October 2015, a widening of £3.1 billion from September 2015.
Global equity markets are mixed today : Dow +0.75%, S&P 500 +0.56%, FTSE –0.63%, DAX +0.06%, CAC -0.05%, Nikkei -1.32%, Shanghai -0.49%.
Gold prices are down $3 trading at $1072 an ounce, WTI Crude Oil is up 0.75% at $37.13 a barrel.
Current indicative rates:
NZDUSD 0.6755 1.9%
NZDEUR 0.6172 2.4%
NZDGBP 0.4457 1.9%
NZDJPY 82.07 1.8%
NZDAUD 0.9261 0.6%
NZDCAD 0.9195 1.9%
Upcoming Data releases (NZST):
- 10:30 – Business NZ Manufacturing Index
- 10:45 – FPI m/m
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.