The NZDUSD opens at 0.6787 (mid-rate) this morning.
The NZD is firmly on the back foot going into this morning’s RBNZ announcement. Yesterday’s business confidence survey which showed confidence now sits at a 7-month low put further downward pressure on the local currency. The NZD is currently trading at 7-month lows against the USD having hit 0.6800 this morning.
The overnight US economic data under whelmed with both core durable goods which exclude transportation equipment, decreasing by 0.3% in May following on from a 1.9% surge in orders in April. Core orders had been expected to increase by 0.5%.
The US pending home sales index fell by 0.5% to 105.9 in May according to the latest National Association of Realtors (NAR) report. Economists had expected home sales to increase by 0.5% after falling by 1.3% to 106.4 in April.
The EUR is under pressure after talks between Merkel's CDU and her CSU allies over migration policy broke down. Merkel and her interior minister Horst Seehofer have been butting heads with Seehofer who is also the leader of the CSU party wanting to refuse entry into Germany for any migrant that has already registered in another European country, while Merkel is pushing for any change in policy to be brought about at a coordinated EU level. Yield on the German 10-year note fell 0.32% on the news.
Global equity markets remain mixed, - Dow -0.16%, S&P 500 -0.23%, FTSE +1.11%, DAX +0.93%, CAC +0.87%, Nikkei -0.31%, Shanghai -1.10%.
Gold prices have edged down 0.3% trading at $1,254 an ounce WTI Crude Oil prices have continued to surge higher, up 3.2% trading at $71.25 a barrel.
Current indicative rates:
| NZDUSD | 0.6787 | -0.9% |
| NZDEUR | 0.5875 | -0.1% |
| NZDGBP | 0.5175 | -0.2% |
| NZDJPY | 74.84 | -0.8% |
| NZDAUD | 0.9252 | -0.2% |
| NZDCAD | 0.9068 | -0.6% |
| GBPNZD | 1.9323 | 0.2% |
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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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