The NZDUSD opens lower, compared with Friday, at 0.7316 this morning.
The USD gained across the board as US bond yields pushed higher ahead of Thursday’s US Fed interest rate meeting and Friday’s US non-farm payrolls employment figures. The NZDUSD consequently fell from recent highs.
The Fed meeting will be Jerome Powell’s first as Chair, having taken the mantle from Janet Yellen. The market is focused on whether we will see a continuation of Yellen’s slow and steady rate hikes – interest rate are anticipated to be increased 3 times during 2018, beginning in March, although some analysts are picking the Fed to raise 4 times.
The GBP weakened on fresh worries over whether Prime Minister Theresa May will be able to execute her Brexit plans.
NZ trade balance will be released at 10:45am.
Global equity markets were mixed on the day – Dow -0.3%, S&P500 -0.3%, FTSE +0.1%, DAX -0.5%, CAC -0.1%, Nikkei -0.0%, Shanghai -1.0%.
Gold prices fell 0.9% to USD$1,345 an ounce. Oil prices (WTI) dropped 0.9% to USD$65.53 per barrel.
Current indicative rates:
| NZDUSD | 0.7316 | -0.8% |
| NZDEUR | 0.5911 | 0.2% |
| NZDGBP | 0.5201 | 0.6% |
| NZDJPY | 79.76 | -0.4% |
| NZDAUD | 0.9039 | -0.9% |
| NZDCAD | 0.9024 | -0.7% |
| GBPNZD | 1.9227 | -0.6% |
Upcoming Data releases (NZST):
- 10:45am Trade Balance
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
We welcome your comments below. If you are not already registered, please register to 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.