The NZDUSD opens at 0.6637 (mid-rate) this morning.
After pushing higher into our close on Friday the NZD has given back all its gains on the back of broad USD strength following stronger than expected U.S. data releases.
The weekend's U.S. data releases printed ahead of economists estimates with an unexpected upward revision to the fourth quarter GDP along with strong consumer sentiment, consumer spending and personal income all combining to push the USD higher. The GDP for Q4 which had been expected to be downwardly revised to 0.4% increased by 0.3% to 1% from the previously reported 0.7%.
Global growth and financial market concerns have been signaled out as the main driver for February’s fall in Euro-zone consumer sentiment. The economic sentiment index fell for the second straight month from 105.1 in January to 103.8 in February, its lowest level in eight months.
Global equity markets closed out the week mixed - Dow -0.34%, S&P 500 -0.19%, FTSE +1.38%, DAX +1.95%, CAC +1.56%, Nikkei +0.30%, Shanghai +0.95%.
Gold prices lost 0.8% over the course of the week closing on Friday at $1222 an ounce, WTI Crude Oil fell 0.9% on Friday but still gained 3.0% for the week closing $32.78 a barrel.
Current indicative rates:
NZDUSD 0.6637 -1.1%
NZDEUR 0.6075 -0.2%
NZDGBP 0.4780 -0.6%
NZDJPY 75.58 -0.3%
NZDAUD 0.9304 0.2%
NZDCAD 0.8980 -1.2%
Upcoming Data releases (NZST):
- 10:45 - Building Consents m/m
- 13:00 - ANZ Business Confidence
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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