The NZDUSD opens at 0.6490 (mid-rate) this morning.
The NZD has outperformed all of its major trading partners with AUD being the only exception, on the back of rising equity markets and market positioning.
Following China’s disappointing GDP and industrial production data releases the NZD dipped, trading as low as 0.6410 before finding support and rallying as commodity prices, and Chinas equity market, started to push higher on expectations of increased government stimulus.
In line with market expectations, this morning’s GDT auction declined for the second time this year. Fonterra's GDT Price Index dipped 1.4%, with an average selling price of $2,405 per tonne, while volumes were also down, falling 14.6% from the previous auction.
Overnight German economic confidence fell for the first time in three months, dropping from 16.1 in Dec to 10.2 in Jan but was still ahead of economists estimates of 8pts.
The big mover over the past 24hrs has been the British pound which rallied strongly on the back of better than expected inflation data before BOE Gov Carney sited weak domestic growth and turmoil in the global economy as reasons why the BOE may delay any rate hike.
Global equity markets have rallied over the past 24hrs- Dow +0.29%, S&P 500 +0.31%, FTSE +1.68%, DAX +1.50%, CAC +1.97%, Nikkei +0.55%, Shanghai +3.22%.
Gold prices are little changed at $1089 an ounce, WTI Crude Oil remains under pressure currently trading at $28.75 a barrel.
Current indicative rates:
NZDUSD 0.6490 0.8%
NZDEUR 0.5940 0.4%
NZDGBP 0.4575 1.3%
NZDJPY 75.25 0.9%
NZDAUD 0.9365 -0.3%
NZDCAD 0.9425 0.6%
Upcoming data releases (NZST):
10:45 – CPI q/q
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