The NZDUSD opens at 0.7021 (mid-rate) this morning.
Global equity markets are pointing higher and currency markets have consolidated ahead of today’s Singapore summit.
An increase in risk appetite has seen the JPY underperform, and it is the weakest of the G10 currencies despite an impressive surge in core machinery tool orders, which increased by 10.1% in April well ahead of the expected 2.4% rise.
The EUR is sitting at 2-week highs against the USD after Italy's economy minister Giovanni Tria announced the country's new populist government isn't considering leaving the Euro-zone or adding to the high public debt load. Italy’s equity index which fell sharply last month on concerns that the new administration might consider pulling Italy out of the euro spiked 3.4% on the news.
Some poor UK economic data overnight has seen the GBP slip lower against the majors. An unexpected sharp fall of 1.4% in UK manufacturing production along with a 0.8% decline in industrial production were the main catalysts.
Markets are likely to remain subdued with investors keen to hear the outcome of today’s summit before adding to their positions, while overnight the latest inflation data out of the US should dictate USD direction ahead of Thursday’s FOMC meeting.
Global equity are broadly higher- Dow +0.22%, S&P 500 +0.29%, FTSE +0.73%, DAX +0.60%, CAC +0.43%, Nikkei +0.48%, Shanghai -0.47%.
Gold prices are inching higher, up 0.2% trading at $1,299 an ounce. WTI Crude Oil prices are little changed trading at $66.07 a barrel.
Current indicative rates:
| NZDUSD | 0.7021 | 0.0% |
| NZDEUR | 0.5954 | -0.2% |
| NZDGBP | 0.5248 | 0.2% |
| NZDJPY | 77.26 | 0.7% |
| NZDAUD | 0.9227 | -0.3% |
| NZDCAD | 0.9116 | -0.1% |
| GBPNZD | 1.9054 | -0.3% |
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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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