The NZDUSD opens at 0.6485 (mid-rate) this morning.
Markets had a wild close to the month on Friday after the Bank of Japan announced plans to introduce negative interest rates.
The announcement surprised investors as Governor Haruhiko Kuroda recently said the bank does not plan to lower interest rates.
In immediate response USDJPY surged from 118.50 to 121.50. The negative rate will affect only a small portion of current accounts with a "three-tier-system" being introduced. The outstanding current account balance of each financial institution will be divided into three tiers to which a positive, zero and negative interest rate will be applied.
Friday’s U.S data releases printed just shy of economists estimates with. Q4 GDP increasing by 0.7% just short of economists estimates of 0.8% and following on from the 2% growth reported for Q3, while consumer sentiment was downwardly revised to 92.0 from the preliminary reading of 93.3.
The highlight over the next 24hrs will be this afternoon’s PMI data release out of China, while domestically investors will be focused on Wednesday morning’s GDT auction and employment data releases.
Global equity markets closed out the week sharply higher- Dow +2.47%, S&P 500 +2.48%, FTSE +2.56%, DAX +1.64%, CAC +2.19%, Nikkei +2.80%, Shanghai +3.09%.
Gold prices were flat on Friday closing out the week at $1117 an ounce, WTI Crude Oil continued to push higheron Friday up 1.2% to close out the week at $33.62 a barrel
Current indicative rates:
NZDUSD 0.6485 0.0%
NZDEUR 0.5987 1.1%
NZDGBP 0.4550 0.9%
NZDJPY 78.65 2.2%
NZDAUD 0.9158 0.2%
NZDCAD 0.9065 -0.4%
Upcoming data releases (NZST)
- 10:45 - Visitor Arrivals m/m
- 14:00 - CNY Manufacturing PMI
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.