The NZDUSD opens at 0.6795 (mid-rate) this morning.
Markets were fairly subdued on Friday as investors awaited the second quarter economic growth data out of the US.
As expected US economic growth increased significantly in Q2, with GDP spiking by 4.1% following on from Q1’s upwardly revised 2.2% increase. The result was just shy of the forecast 4.2% increase, and has the economy growing at its fastest pace since 2014. Q1 growth had previously been reported at 2.0%.
US Consumer Sentiment fell less than forecast in July with University of Michigan reporting its consumer sentiment index for July was upwardly revised to 97.9 from the preliminary reading of 97.1. The final reading was still short of the 98.2 result in June with growing concerns over a full blown trade war weighing on the index.
Following both data releases yield on the benchmark US ten-year note, which moves opposite of its price, edged down by 1.5 basis points at 2.96.
Crude oil prices fell 2.6% on Friday with reports that Russia will increase crude output by around 250k barrels a day putting downward pressure on prices.
Local highlights for the NZD during the week ahead will be tomorrow’s business confidence data release and Thursday’s quarterly employment report, while monetary policy statements out of the BOJ, BOE and the Federal Reserve along with the US non-farm-payrolls will be key direction drivers.
Global equity markets were mixed on Friday, - Dow -0.3%, S&P 500 -0.65%, FTSE +0.50%, DAX +0.40%, CAC +0.57%, Nikkei +0.56%, Shanghai -0.30%.
Gold prices were little changed on Friday closing out the week at $1,222 an ounce. WTI Crude Oil prices fell 2.6% on Friday, to close out the week at $67.73 a barrel.
Current indicative rates:
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