The Opening Bell: Where currencies start on Thursday, October 12, 2017

By Dan Bell

The NZDUSD opens at 0.7076 (mid-rate) this morning.

The EUR is the strongest performer of the G10 currencies, strengthening against all its rivals after Catalan leader Carles Puigdemont stopped short of declaring immediate independence and instead said the region will seek to hold official talks with the Spanish government over their future. The EUR is currently trading at 2 week highs against the USD.

There has been little reaction to this morning’s Fed minutes which confirmed there is a growing split between Fed officials on the timing of future rate hikes. Several Federal Reserve officials expressed concern over the persistence of low inflation and questioned whether or not a rate hike is warranted in December, while other voting members believe a hike in December was” likely to be warranted if the medium-term outlook remained broadly unchanged.” Officials noted “that interpreting the next few inflation reports would likely be complicated by the temporary run-up in energy costs and the prices of other items affected by storm-related disruptions and rebuilding.”

Once again there is little in the way of market moving data during our trading day with investors looking to tonight’s US PPI and ECB President Draghi’s speech on monetary policy for direction.

Global equity markets remain mixed - Dow +0.03%, S&P 500 +0.03%, FTSE -0.06%, DAX +0.17%, CAC -0.02%, Nikkei +0.28, Shanghai +0.16%.

Gold prices have edged lower, down 0.4% trading at $1,286 an ounce. WTI Crude Oil prices have pushed higher, up 0.5% overnight currently sitting at $51.23 a barrel.

Current indicative rates:

NZDUSD    0.7076      0.1%
NZDEUR    0.5971     -0.3%
NZDGBP    0.5355      0.0%
NZDJPY      79.53       0.2%
NZDAUD    0.9092      0.1%
NZDCAD    0.8839     -0.1%
GBPNZD    1.8674      0.0%

Upcoming Data releases (NZST):

  • 10:45 - NZ FPI

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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »

Daily exchange rates

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