The NZDUSD opens at 0.6832 (mid-rate) this morning.
Surprisingly, and following a fourth consecutive fall in dairy prices the NZD along with the AUD have outperformed all their major rivals.
The fall in global dairy prices continued this morning with the overall index price down 3.4%. Both whole and skimmed milk prices contributed to the overall fall with WMP prices down 2.7% and SMP prices plummeting 6.5%. The last increase in the index was back on September 19 when it increased by 0.9%.
The AUD outperformed after RBA Governor Philip Lowe hinted that although no interest rate move is forecast in the near term the next change to the OCR in Australia could result in a hike. Gov Lowe stated ‘If the economy continues to improve as expected, it is more likely that the next move in interest rates will be up, rather than down’.
US existing home sales exceeded economists’ forecasts surging by 2% to an annual rate of 5.48m in October, well ahead of the expected 0.7% increase. At the same time Septembers previously reported result was downwardly revised 5.37m from 5.39m.
This morning’s visitor arrivals data is likely to have little effect on the currency as investors look to tomorrows FOMC minutes and NZ’s quarterly retail sales report for direction.
Global equity markets have continued to push higher- Dow +0.77%, S&P 500 +0.66%, FTSE +0.30%, DAX +0.83%, CAC +0.48%, Nikkei +0.70%, Shanghai +0.53%.
Gold prices are down little changed at $1,281 an ounce. WTI Crude Oil prices have pushed up 1.2%, currently trading at $56.71 a barrel.
Current indicative rates:
NZDUSD 0.6832 0.3%
NZDEUR 0.5821 0.4%
NZDGBP 0.5161 0.3%
NZDJPY 76.87 0.2%
NZDAUD 0.9015 -0.1%
NZDCAD 0.8723 0.1%
GBPNZD 1.9376 -0.3%
Upcoming Data releases (NZST):
- 10:45 Visitor Arrivals
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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