The NZDUSD opens at 0.7031 (mid-rate) this morning.
The Kiwi is relatively flat and the AUD is the best performing currency in the past 24 hours after the Australia GDP was announced yesterday, with the EUR also performing well.
Australia’s economy expanded faster than forecast in the first quarter as exports rebounded, underscoring the RBA’s expectation for stronger growth this year. Gross Domestic Product advanced 1% from the prior quarter, with overseas shipments accounting for half the expansion, the Australian Bureau of Statistics reported yesterday. Expectation was +0.9%.
ECB Chief Economist confirmed yesterday’s Bloomberg story that at the June 14 policy meeting the Governing Council will be considering “whether the progress so far has been sufficient to warrant a gradual unwinding of our net asset purchases”. The ECB’s Knot later told the Dutch Parliament that “it’s reasonable to announce the end of the net asset purchases soon”.
The U.S. Energy Information Administration reported overnight that crude supplies climbed by 2.1 million barrels for the week ended June 1. Analysts were expecting a decline of 1.3 million barrels while the American Petroleum Institute on Tuesday reported a fall of 2 million barrels. WTI Crude traded a 64.27 to 65.96 range but overall fell 1.1% from yesterday’s to open at 64.79.
The U.S. Trade Balance fell to a seven month low in April as exports rose to a record high. The Trade Balance dropped 2.1% to USD46.2 Billion the smallest since September 2017. The consensus was for no change at USD 49.0 Billion.
Eurozone Retail Sales rose in May, reversing the downturn seen in April. The increase was indicative of sharper rises in Germany and France and a slower decline in Italy. The HIS Markit Eurozone Retail PMI rose to 51.7 in May from 48.6 in April signalling the sharpest rise since February.
Global equity are higher except France: Dow +1.14%, S&P 500 +0.71%, FTSE +0.33%, DAX +0.34%, CAC -0.06%, Nikkei +0.38%, Shanghai +0.03%.
Gold prices are down 0.1% currently trading at $1,296 an ounce. WTI Crude Oil prices are fell 1.1% trading at $64.79 a barrel.
Current indicative rates:
| NZDUSD | 0.7037 | 0.2% |
| NZDEUR | 0.5975 | -0.3% |
| NZDGBP | 0.5243 | 0.0% |
| NZDJPY | 77.46 | 0.5% |
| NZDAUD | 0.9178 | -0.5% |
| NZDCAD | 0.9102 | -0.2% |
| GBPNZD | 1.9065 | 0.0% |
Upcoming Data releases (NZST):
- 10:30am - AUD - AIG Construction Index
- 1:30pm - AUD - Trade Balance
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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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