The Opening Bell: Where currencies start on Wednesday, October 18, 2017

By Dan Bell

The NZDUSD opens at 0.7169 (mid-rate) this morning.

The NZD is trading slightly higher against the majority of its rivals after yesterday’s inflation data came is ahead of expectations. The NZDUSD traded to a high of 0.7200 before a disappointing dairy auction led to a NZD sell-off.

Yesterday’s consumer price index (CPI) climbed 1.9% y/y with the September quarter increasing by 0.5%. Both results were higher than forecasts with economists predicting an increase of 1.8% and 0.4% respectively.

A tapering off of demand resulted in another negative result at this morning’s dairy auction. The new season auction results are now evenly balanced at 5 positive and 5 negative outcomes. The GDT price index fell 1% from the previous auction a fortnight ago to US$3,204 a tonne, volume also fell with 35,669 tonnes of product selling under the hammer, down from 37,990 tonnes at the previous auction.

Better-than-expected economic data releases out of the US has helped support the USD. Industrial production for the month of September increased by 0.3% (exp 0.2%) after falling by 0.7% in August, while both import and export prices increased more than forecast during the same month. US import prices rose 0.7% following a 0.6% increase in August, while export prices climbed by 0.8% in September following an upwardly revised 0.7% increase in august.

UK inflation for September increased to 3%, up from 2.9% in August and in line with expectations, but the GBP failed to take advantage of the data after new deputy Bank of England governor Sir Dave Ramsden said he was not part of the majority of policymakers who favoured a rate hike.

Global equity markets remain mixed - Dow +0.07%, S&P 500 -0.06%, FTSE -0.14%, DAX -0.07%, CAC -0.03%, Nikkei +0.38, Shanghai -0.19%.

Gold prices are down 1.2% trading at $1,285 an ounce. WTI Crude Oil prices have edged lower, down 0.7% overnight currently sitting at $51.55 a barrel.

Current indicative rates:

NZDUSD    0.7169      0.0%
NZDEUR    0.6089      0.2%
NZDGBP    0.5434      0.4%
NZDJPY      80.44       0.1%
NZDAUD    0.9141      0.1%
NZDCAD    0.8991      0.2%
GBPNZD    1.8394     -0.4%


To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.

Email:  

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

Daily exchange rates

Select chart tabs »
The 'US$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'AU$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'TWI' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥en' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥uan' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '€uro' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'GBP' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.