The NZDUSD opens at 0.6669 (mid-rate) this morning.
The Reserve Bank of NZ surprised the market yesterday morning and cut interest rates by 0.25% to 2.25% and the kiwi dropped 180 points over the day from yesterday’s open.
Chinese Consumer Prices Index (CPI) rose 2.3% in February from a year earlier, compared with 1.8% in January. Food costs climbed amid the week long Lunar New Year holidays where millions feast on roast pork, duck, seafood and vegetables.
Chinese Producer Price Index (PPI) fell 4.9%, narrowing from a 5.3% decrease in January, extending declines to a record 48 months.
German Trade Balance showed a surplus of EUR 13.6 billion in January 2016, smaller than the EUR 15.9 billion in January 2015. German exports declined 1.4%, while imports increased 1.5% year on year.
Italian unemployment rate was 11.5% as expected, quite interesting when compared with the U.S. at 4.9%, and 6.0% for NZ and Australia
U.S. Unemployment claims were 259k for the week ending 5 March, lower than the 272k expected.
The European Central Bank (ECB) delivered a surprise package of measures to kickstart Europe's economy. The euro zone's 19 countries are now seen posting average growth of 1.4 percent in 2016, rather than the 1.7 percent forecast in December
Global equity markets are down with the exception of Japan: Dow -0.68%, S&P 500 -0.61%, FTSE -1.78%, DAX -2.31%, CAC -1.70%, Nikkei +1.26%, Shanghai -2.02%.
Gold prices rallied 1.2% currently up $16 trading at $1272 an ounce, WTI Crude Oil has continued higher overnight currently up 0.9% trading at $38.29 a barrel.
Current indicative rates:
NZDUSD 0.6669 -1.8%
NZDEUR 0.5956 -3.2%
NZDGBP 0.4667 -2.2%
NZDJPY 75.21 -2.1%
NZDAUD 0.8958 -0.9%
NZDCAD 0.8913 -0.9%
Upcoming data releases:
- 10:30 – Business NZ Manufacturing Index
- 10:45 – FPI 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 »
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.