The Opening Bell: Where currencies start on Friday, March 10, 2017

By Dan Bell

The NZDUSD opens at 0.6897 (mid-rate) this morning.

The NZD has continued its run lower overnight with the December 23rd low at 0.6857 a clear target. This week the NZD/USD rate has dropped 1.9% but it feels like more with the February 7th high at 0.7376 a distant memory.

The kiwi has had a run of 10 consecutive business days lower, and has painted the bottom end of the Bollinger band - a volatility indicator for 7 of those.

West Texas Crude Oil broke through the $50.00 a barrel psychological level and fell a massive 4.4% overnight to 48.88 (down 8.3% for the week).

U.S. Unemployment claims increased 20,000 from the previous week's unrevised level of 223,000 to 243,000.

The European Central Bank (ECB) left its benchmark interest rate unchanged overnight and said it would continue with its generous asset-buying program until at least the end of the year. The monthly rate is due to come down from 80 billion euros ($84.4 billion) to 60 billion euros in April and is set to run through until the end of December this year.

Global equity markets were again mixed: Dow -0.08, S&P -0.01%, FTSE -0.27%, DAX +0.09%, CAC +0.42%, Nikkei +0.34%, Shanghai -0.74%.

Gold prices are down 2.5% for the week and 0.5% overnight currently trading at $1,203 an ounce, WTI Crude Oil has dropped 4.4% overnight trading at $48.88 a barrel.

Current indicative rates:

NZDUSD       0.6897     -0.1%     
NZDEUR       0.6516     -0.6%     
NZDGBP       0.5663     -0.3%      
NZDJPY         79.18       0.1%
NZDAUD       0.9186      0.2%   
NZDCAD       0.9316      0.0%  

Upcoming Data releases (NZST):

• 12:30pm tonight - US Non Farm Payrolls
• 12:30pm tonight - US Unemployment rate

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 »