The NZDUSD opens at 0.6891 (mid-rate) this morning.
The NZD fell sharply yesterday afternoon following the announcement from the incoming Labour-led coalition government that it plans to review and reform the Central bank Act to include employment alongside inflation as a duel target.
This morning President Trump meets GOP senators hoping to gain their support to pass tax reforms and other legislative goals before next year’s congressional elections. Last week the Senate passed a related budget plan but specifics on the tax legislation are still unknown.
The Euro-zone manufacturing and service sectors, led once again by France and Germany are growing at a faster pace than expected according to the latest flash data release. While growth in Germany remains strong it was France according to the data that posted its sharpest rise in output since May 2011.
This afternoon the NZDAUD cross rate will be dictated by Australia’s inflation data due for release at 13:30. The forecast is for Q3 CPI to increase by 0.8% following on from Q2’s 0.2% increase.
Global equity markets have strengthened further - Dow +0.86%, S&P 500 +0.27%, FTSE +0.17%, DAX +0.08%, CAC +0.15%, Nikkei +0.50%, Shanghai +0.22%.
Gold prices are little changed, down 0.3% trading at $1,276 an ounce. WTI Crude Oil prices have continued to push higher, up 1.0% overnight currently sitting at $52.39 a barrel.
Current indicative rates:
NZDUSD 0.6891 -1.1%
NZDEUR 0.5858 -1.3%
NZDGBP 0.5248 -0.5%
NZDJPY 78.42 -1.0%
NZDAUD 0.8859 -0.7%
NZDCAD 0.8737 -0.8%
GBPNZD 1.9055 0.5%
Upcoming Data releases (NZST):
- 13:30 - Australian Q3 CPI
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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