The Opening Bell: Where currencies start on Wednesday, December 14, 2016

By Dan Bell

The NZDUSD opens at 0.7208 (mid-rate) this morning.

Better-than-expected China data has had a positive effect on the NZD overnight. Both industrial production and retail sales were ahead of economists estimates with industrial production improving to 6.2% in November up from 6.1% in October, economists had expected growth to remain at 6.1%. China’s retail sales exceeded the expected 10.2% result, with the report showing sales grew by 10.8% in November.

Overnight inflation in the UK spiked to a 25mth high with the Consumer Prices Index (CPI) increasing by 1.2% in the year to November after rising to 0.9% in the year to October. Economists had expected the index to rise to 1.1%.

German economic sentiment for December was unchanged from November with the ZEW indicator of economic sentiment printing at 13.8 points just short of the expected 14 point result. The current reading is well below the long-term average of 24.0 points.

Early tomorrow morning the Fed will release their December FOMC statement. The market has fully priced in a  25 basis point hike so investors will focus on the statement for any clues as to the speed and magnitude of future rate hikes.

Global equity markets are on the rise - Dow +0.53%, S&P 500 +0.08%, FTSE +1.13%, DAX +0.84%, CAC +0.91%, Nikkei +0.50%, Shanghai +0.07%.

Gold prices have dipped overnight currently down 0.6% at $1,156 an ounce WTI Crude Oil is holding steady at $53.07 a barrel.  

 Current indicative rates:

NZDUSD       0.7208       0.2%
NZDEUR       0.6782       0.4%
NZDGBP       0.5684       0.3%
NZDJPY         83.05        0.4%
NZDAUD       0.9611       0.2%
NZDCAD       0.9456       0.8%

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 »