The Opening Bell: Where currencies start on Tuesday, February 2, 2016

By Dan Bell

The NZDUSD opens at 0.6500 (mid-rate) this morning.

The NZD has had a strong start to the week outperforming all its major trading partners. The big mover is once again the JPY which has continued to fall following last week’s shock interest rate announcement.

The data releases out of the U.S overnight produced mixed results with Personal income rising 0.3% in December slightly ahead of the expected 0.2%, while construction spending for December and manufacturing activity in January fell short of expectations printing 0.1% (exp 0.6%) and 48.2 (exp 48.3) respectively.

Strong manufacturing data and a rise in mortgage approvals in the UK has seen the GBP make steady gains against most of its trading partners. The manufacturing sector expanded at the strongest pace in three months in January rising to 52.9 from 52.1 in December (exp 51.8) while The number of mortgage approvals rose unexpectedly to 71k in December from 70k in November. (highest since August 2015).

This afternoon the RBA meet for the first time this year, for their monthly rate announcement, which is expected to remain at a record low of 2%.

Global equity markets with the Nikkei being the exception are broadly lower- Dow -0.70%, S&P 500 -0.65%, FTSE -0.39%, DAX -0.41%, CAC -0.56%, Nikkei +1.96%, Shanghai +1.76%.

Gold prices have had a strong start to the week up $10 to $1127 an ounce, WTI Crude Oil has given up Friday’s gains currently down 6% at $31.60 a barrel 

Current indicative rates:

NZDUSD       0.6500      0.3%
NZDEUR       0.5970      0.8%
NZDGBP       0.4520      0.2%
NZDJPY         78.70        2.2%
NZDAUD       0.9180      0.4%
NZDCAD       0.9110      0.1%

Upcoming data releases (NZST)

• 13:00 - ANZ Commodity Prices 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 »