The Opening Bell: Where currencies start on Monday, May 21, 2018

By Dan Bell

The NZDUSD opens at 0.6919 (mid-rate) this morning.

The NZD had a positive close to the week, rising against all its major rivals and closing back above 69 US cents as US Treasury yields pulled back from 7-year highs. After spiking to 3.109 late on Thursday, yield on the ten-year note fell 4.2 basis points on Friday closing out the week at 3.067%.

The ECB reported its current account surplus declined for the second consecutive month and now sits at its lowest level in 9-months. The current account surplus fell to a seasonally adjusted EUR 32.0B in March from EUR 36.8B in February.

The CAD was the worst performing of the G10 currencies on Friday following disappointing economic data. Friday’s inflation data showed the consumer price index rising at an annual pace of 2.2% in April, down from 2.3% in March and below the expected unchanged result.

News that China and the US are “putting the trade war on hold” came after markets had closed for the week and should have a positive effect on equity markets this morning. The US announced they won’t impose tariffs on Chinese products for now, after China proposed to “significantly increase purchases” of U.S. goods.

This main focus for local investors this morning will be NZ’s quarterly retail sales report, with economists expecting a 1% increase in Q1 following on from Q4’s 1.7% rise.

Global equity markets finished the week mixed, - Dow +0.00%, S&P 500 -0.26%, FTSE -0.12%, DAX -0.28%, CAC -0.13%, Nikkei +0.40%, Shanghai +1.24%.

Gold prices edged higher on Friday up 0.1%, closing out the week at $1,292 an ounce. WTI Crude Oil prices inched lower on Friday, down 0.3% to close out the week at $71.37 a barrel, having gained 1.0% on the week.

Current indicative rates:

NZDUSD 0.6919 0.7%
NZDEUR  0.5875 0.8%
NZDGBP 0.5138 1.0%
NZDJPY 76.75 0.8%
NZDAUD 0.9194 0.4%
NZDCAD 0.8911 1.2%
GBPNZD 1.9463 -1.0%

Upcoming Data releases (NZST):

  • 10:45 - Retail Sales q/q
              - Visitor Arrivals m/m
  • 15:00 - Credit Card Spending y/y

 

 

 

 

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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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USD 
NZD
End of day UTC
Source: CoinDesk

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