The Opening Bell: Where currencies start on Tuesday, May 8, 2018

The Opening Bell: Where currencies start on Tuesday, May 8, 2018

By Dan Bell

The NZDUSD opens at 0.7018 (mid-rate) this morning.

Currencies have been somewhat side-lined as global equity markets and oil prices push higher.

Positive corporate earnings along with the weekends US jobs data have seen major averages push higher. Oil prices are back above USD $70 a barrel for the first time since November 2014. Surplus oil stocks have been steadily declining since the OPEC cartel cut production and with President Trump threatening to re-impose sanctions to reduce Iranian oil exports prices have risen sharply.

Overnight Euro-zone economic data disappointed with investor confidence weakening for the fourth consecutive month and German factory orders unexpectedly declining in the month of March.

The Sentix investor sentiment index fell unexpectedly to 19.2 in May from 19.6 in April. Economists had expected the index to rise to 22.4.

German factory orders declined 0.9% m/m in March following on from a downwardly revised 0.2% fall in February, once again this came as a surprise to economists who had predicted orders to increase by 0.5% following three consecutive monthly falls.

The key driver for the NZD during our trading data will be this afternoon’s RBNZ quarterly inflation expectations due for release at 15:00.

Global equity markets broadly higher- Dow +0.67%, S&P 500 +0.61%, FTSE Closed, DAX +1.00%, CAC +0.28%, Nikkei -0.03%, Shanghai +1.48%.

Gold prices are unchanged trading at $1,314 an ounce. WTI Crude Oil prices have broken up through $70 a barrel overnight currently trading at $70.63 a barrel.

Current indicative rates:

NZDUSD 0.7018 -0.1%
NZDEUR  0.5885 0.2%
NZDGBP 0.5175 -0.3%
NZDJPY 76.48 -0.3%
NZDAUD 0.9335 0.1%
NZDCAD 0.9043 0.2%
GBPNZD 1.9324 0.3%

Upcoming Data releases (NZST):

  • 13:30 - AU Retail Sales m/m
  • 15:00 - Inflation Expectations q/q

 

 

 

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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »

Daily exchange rates

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USD 
NZD
End of day UTC
Source: CoinDesk

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