The NZD continues to slip lower, underperforming overnight as the Global Dairy Auction suffers its largest fall since March this year.
The GDT index fell 2.4% from the previous auction a fortnight ago, with an average selling price of $3,223 per tonne. Whole milk powder (WMP) prices which account for just over 50% of sales were down by 3%, while skimmed milk powder and butter prices also declined down 1.4% and 4% respectively.
Late yesterday afternoon the RBA as widely expected kept its cash rate unchanged at a record low of 1.5%, with Reserve Bank Gov Phillip Lowe stating that slow growth in wages along with high household debt are likely to constrain both growth and spending.
The GBP fell against all the majors after the IHS Markit construction purchasing managers' index tumbled to 48.1 in September after recording a reading of 51.1 in August. The last time the index recorded a sub 50 reading (signalling contraction) was August 2016.
With little in the way of economic data releases during our trading day investors are likely to focus on speeches from both ECB President Draghi, and Fed Chair Yellen due out this evening before adding to their positions.
Global equity markets have continue to push higher - Dow +0.33%, S&P 500 +0.12%, FTSE +0.39%, DAX +0.58%, CAC +0.32%, Nikkei +1.05%, Shanghai Closed.
Gold prices are unchanged trading at $1,273 an ounce. WTI Crude Oil prices are holding steady at $50.42 a barrel.
Current indicative rates:
NZDUSD 0.7155 -0.7%
NZDEUR 0.6089 -0.7%
NZDGBP 0.5401 -0.4%
NZDJPY 80.73 -0.5%
NZDAUD 0.9138 -0.6%
NZDCAD 0.8935 -0.8%
GBPNZD 1.8515 0.4%
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