The Opening Bell: Where currencies start on Wednesday, December 13, 2017

By Dan Bell

The NZDUSD opens at 0.6926 (mid-rate) this morning.

The NZD has edged higher against the majors with the EUR the worst performing currency after Germany's economic sentiment weakened more-than-expected in December.

According to the latest ZEW Indicator of Economic Sentiment, sentiment fell 1.3pts to 17.4 in December following November’s 18.7 reading. The index had been expected to decline by 0.8pts. It is worth noting the long term average for the indicator is 23.7.

UK inflation unexpectedly increased in November rising to 3.1%, its highest level since March 2012. Economists had expected inflation to remain unchanged from October’s 3% reading. Core inflation which excludes energy, food, alcoholic beverages and tobacco, remained unchanged at 2.7%.

US producer prices increased slightly more than expected in November with the Labour Department report showing the producer price index rose by 0.4% equalling the September and October increases and ahead of the expected 0.3% rise.

Overnight tonight the US monthly inflation data will play second fiddle to tomorrow morning’s Federal Reserve monetary policy statement. The Fed are widely expected to hike benchmark rate by a quarter point to 1.5% and will also publish their updated  'dot plot' projections of the Federal Funds rate for the next 24 months.

Global equity markets remain mixed - Dow +0.56%, S&P 500 +0.31%, FTSE +0.63%, DAX +0.46%, CAC +0.66%, Nikkei -0.32%, Shanghai -1.25%.

Gold prices have edged lower, down 0.7% to $1,238 an ounce. WTI Crude Oil prices have given back yesterday’s gains, down 0.9% trading at $57.41 a barrel.

Current indicative rates:

NZDUSD    0.6926      0.1%
NZDEUR    0.5908      0.8%
NZDGBP    0.5204      0.5%
NZDJPY      78.71       0.3%
NZDAUD    0.9175      0.0%
NZDCAD    0.8926      0.4%
GBPNZD    1.9216     -0.5%

Upcoming Data releases (NZST):

  • 10:45 - FPI m/m

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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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USD 
NZD
End of day NY time
Source: CoinDesk

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