The NZDUSD opens at 0.7141 (mid-rate) this morning.
After falling back below 0.7100 from a high of 0.7150 following the shock resignation of Prime Minister John Key the NZD has retraced the move and we open up this morning with the NZD retesting yesterday’s highs.
Overnight the US ISM Non-Manufacturing PMI for November printed well ahead of expectations with a score of 57.2 verse expectations of a 55.4 reading. The result shows the economy’s largest sector has expanded at its fastest pace in 13 months, and will support the expected rate hike next week.
It was a similar picture in the UK with their service sector expanding for the fourth consecutive month and at its fastest pace in 10 months. The result shows the economy continues to recover following a sharp contraction in July on the back of the Brexit vote.
On Thursday European Central Bank President Mario Draghi is expected to announce that the bank will extend its current EUR 80 billion per month of asset purchases out a further 6 months to September 2017.
This afternoon the Reserve bank of Australia is expected to leave its overnight cash rate unchanged at the record low of 1.5% while overnight the latest Fonterra GDT auction will dictate direction for the NZD.
Global equity markets are mixed - Dow +0.27%, S&P 500 +0.54%, FTSE +0.24%, DAX +1.63%, CAC +1.00%, Nikkei -0.82%, Shanghai -1.21%.
Gold prices have slipped lower currently down 1.3% at $1,172 an ounce WTI Crude Oil have surged higher following the OPEC announcement currently up 8.5% at $49.14 a barrel.
Current indicative rates:
NZDUSD 0.7141 0.2%
NZDEUR 0.6623 -0.9%
NZDGBP 0.5609 0.0%
NZDJPY 81.18 0.4%
NZDAUD 0.9546 -0.2%
NZDCAD 0.9461 -0.2%
Upcoming Data releases (NZST):
- 16:30 - RBA Rate Statement
- Overnight - GDT Price Index
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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