The NZDUSD opens at 0.6573 (mid-rate) this morning.
It’s been another slow start to the trading week with a lack of economic data and growing concerns of Turkey’s ability to support its currency keeping investors on the side lines.
The Turkish lira traded to a new record low against the USD yesterday afternoon forcing Turkey's central bank to intervene in the market. The central bank revised reserve requirement ratios for banks but fell short of promising hikes to their interest rate. In a statement the central bank said it was ready to take "all necessary measures" to ensure financial stability, and promised to provide banks with "all the liquidity" they needed.
With the USD continuing to strengthen and the Fed on course to raise interest rates next month gold prices fell below $1,200 an ounce for the first time in 18mths.
This afternoon investors will look to China’s economic data releases for direction, while the latest NAB business confidence report should dictate short-term direction for the NZDAUD cross rate.
Global equity markets are on the back foot, - Dow -0.25%, S&P 500 -0.16%, FTSE -0.32%, DAX -0.53%, CAC -0.04%, Nikkei -1.98%, Shanghai -0.34%.
Gold prices have broken down through $1,200 for the first time since March 2017, currently trading at $1,193 an ounce WTI Crude Oil prices have are down1.5% trading at $65.91 a barrel.
Current indicative rates:
| NZDUSD | 0.6573 | 0.2% |
| NZDEUR | 0.5767 | 0.1% |
| NZDGBP | 0.5151 | 0.3% |
| NZDJPY | 72.75 | 0.5% |
| NZDAUD | 0.9048 | 0.1% |
| NZDCAD | 0.8633 | 0.0% |
| GBPNZD | 1.9414 | -0.3% |
Upcoming Data releases (NZST):
- 13:30 - NAB Business Confidence
- 14:00 - CNY Fixed Asset Investment y/y
- CNY Industrial Production y/y
- CNY Retail Sales
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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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