The NZDUSD opens at 0.6930 (mid-rate) this morning.
A further increase in global dairy prices has helped support the NZD. Ahead of the latest dairy auction the NZDUSD had been threatening to push back below 0.6900 but rose sharply on the back of a fourth consecutive rise in dairy prices.
Prices in the latest Global Dairy Trade (GDT) auction rose 3.6% following a 3.1% gain at the previous auction a fortnight ago. Whole Milk Powder prices were up a further 5.2% to $3,233/MT following a 3.5% increase previously. Skimmed Milk Powder decreased marginally by 0.9% while the standout performer was butter milk powder which gained 21.8%.
Overnight Euro-zone manufacturing PMI printed in line with expectations while the British pound was boosted after the Markit/CIPS Purchasing Managers' Index for the manufacturing sector unexpectedly rose to 57.3 in the month of April. Economists had been expecting the index to pull back to 54.0 following March’s 4-month low of 54.2 result.
Further direction for the NZD will be dictated by this morning’s quarterly employment report and labour cost index due for release at 10:45.
Global equity markets are broadly higher - Dow +0.11%, S&P 500 +0.08%, FTSE +0.64%, DAX +0.56%, CAC +0.70%, Nikkei +0.70%, Shanghai -0.35%.
Gold prices have edged down 0.2% currently trading at $1,255 an ounce. WTI Crude Oil continues to fall down 2.1% overnight currently trading at $47.83 a barrel.
Current indicative rates:
NZDUSD 0.6930 0.3%
NZDEUR 0.6345 0.2%
NZDGBP 0.5362 0.2%
NZDJPY 77.68 0.5%
NZDAUD 0.9206 0.3%
NZDCAD 0.9510 0.7%
GBPNZD 1.8649 -0.2%
Upcoming Data releases (NZST):
- 10:45 - Employment Change q/q
- Unemployment Rate
- Labour Cost Index q/q
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