The NZDUSD opens at 0.7342 (mid-rate) this morning.
Global equity markets are trending upwards with sentiment improving as tensions in Syria abate, but there has been little reaction in currency markets which continue to trade sideways.
The USD has made small gains against the majors helped higher on the back of better-than-expected housing and industrial production data releases.
The US Commerce Department released a report showing housing starts rose 1.9% in March after plunging 3.3% in February, with building permits also spiking higher, up 2.5% in March following a 4.1% fall in February.
Following on from a 1.0% lift in February, industrial production increased by 0.5% in March, just ahead of the forecast 0.4% reading.
This morning’s Global Dairy Trade (GDT) auction resulted in a 2.7% increase in the index, with whole milk powder prices up 0.9% and skimmed milk powder prices rising 3.6%. A total of 19,262MT of product sold under the hammer.
German economic confidence declined sharply in April, with the ZEW Indicator of Economic Sentiment plummeting to -8.2 in April from +5.1 in March. The fall was far greater than expected, with economists predicting a score of -1.
The UK unemployment rate fell to a new all-time-low in the three months to February with the Office for National Statistics report showing unemployment now sits at 4.2% down from 4.3% in the three months to January. Average weekly earnings increased by 2.8% for the same period following a 3% rise in the three months to January. Economists had expected another 3% increase.
Once again there is very little in the way of economic data during our trading day but overnight inflation data out of the UK along with the bank of Canada monetary policy statement (the BOC are expected to keep the OCR unchanged} should prove to be the highlights.
Global equity markets are broadly higher - Dow +0.75%, S&P 500 +1.01%, FTSE +0.39%, DAX +1.57%, CAC +0.76%, Nikkei +0.06%, Shanghai -1.41%.
Gold prices are unchanged, trading at $1,347 an ounce. WTI Crude Oil prices are little changed, down 0.2% to $66.29 a barrel.
Current indicative rates:
| NZDUSD | 0.7342 | -0.2% |
| NZDEUR | 0.5935 | -0.1% |
| NZDGBP | 0.5135 | 0.0% |
| NZDJPY | 78.55 | -0.4% |
| NZDAUD | 0.9445 | -0.1% |
| NZDCAD | 0.9209 | -0.4% |
| GBPNZD | 1.9475 | 0.0% |
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »
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