The NZDUSD opens at 0.6866 (mid-rate) this morning.
In what has been a very quiet start to the trading week the British Pound has been the best performing of the G10 currencies as investors position their portfolios in anticipation of the BoE hiking rates by 25bp on Thursday.
Despite the ongoing political tensions within the Euro-zone the European Commission economic sentiment index increased more than expected in October, with the index posting a reading of 114.0, up from 113.1 in September and ahead of the forecast 113.3 reading. Economic confidence is now at its highest level since January 2001.
The US Commerce Department report on both personal income and personal spending will have pleased the Federal Reserve as they look for an increase in inflation. The report showed personal income rose in line with economists’ forecasts in September rising by 0.4% following a 0.2% increase in August, while during the same period personal spending surged up by 1.0% following a 0.1% increase in August. Economists had forecast spending to increase by 0.8%.
Today’s domestic data releases are expected to have little effect on the currency with investors looking ahead to tomorrow morning’s quarterly employment report for direction.
Global equity markets are mixed- Dow -0.3%, S&P 500 -0.3%, FTSE -0.23%, DAX +0.09%, CAC -0.01%, Nikkei +0.01%, Shanghai +0.77%.
Gold prices are little changed, up 0.4% trading at $1,277 an ounce. WTI Crude Oil prices have continued to edge higher, up 0.3% overnight currently sitting at $54.05 a barrel.
Current indicative rates:
NZDUSD 0.6866 -0.1%
NZDEUR 0.5902 0.4%
NZDGBP 0.5201 -0.6%
NZDJPY 77.69 -0.5%
NZDAUD 0.8945 -0.1%
NZDCAD 0.8812 0.1%
GBPNZD 1.9227 0.6%
Upcoming Data releases (NZST):
- 10:45 - Building Consents m/m
- 13:00 - ANZ Business Confidence
- Tentative BOJ Monetary Policy Statement
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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