The NZDUSD opens at 0.6500 (mid-rate) this morning.
The NZD has rallied strongly overnight, briefly trading to a high of 0.6520
The US unemployment claims for the week ending 16 January were 293k an increase of 10k from the previous week. This was better that the market consensus of 279k.
Surprisingly US Crude Oil Inventories were up – nearly 4 million barrels ahead of the 3.3 million expected, and yet the WTI Oil price is up 13% overnight. Speculators may have been waiting for this report to come out before buying the commodity and pushing the price higher.
The European Central Bank left its key interest rates unchanged as the slump in oil prices are depressing euro-area inflation. Draghi said he expects rates at present or lower levels for an extended period of time, and that downside risks have increased again and the central bank needs to review, possibly reconsider policy stance at the next meeting
Global equity markets are mixed today: Dow +1.17%, S&P 500 +0.94%, FTSE +1.77%, DAX +1.94%, CAC +1.97%, Nikkei –2.43%, Shanghai -3.23%.
Gold prices are down $9 (1%) trading at $1106 an ounce, WTI Crude are up 13% at $29.94 a barrel
Current indicative rates:
NZDUSD 0.6500 1.3%
NZDEUR 0.5970 1.7%
NZDGBP 0.4576 0.9%
NZDJPY 76.44 2.0%
NZDAUD 0.9298 -0.2%
NZDCAD 0.9289 -0.4%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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