The NZD performed well overnight, opening at 0.6692.
Stocks out of the US are faring better than the USD, with both the Dow and S&P hitting new record highs. Risk on sentiment is prevailing, which has seen the NZD continue its climb off the lows. NZ GDP came in yesterday at 1% q/q, beating expectations of 0.8% and giving the Kiwi some wings. The market reacted very positively to the number, which was somewhat surprising giving that a strong number had been relatively telegraphed. If you compare it to the RBNZs internal GDP forecast of 0.5% though, and the heavy short position in the NZD, then it makes more sense.
UK Retails sales came in positive beating the -0.2% expectations at 0.3%. While very positive, this is a volatile data set, and is quite common for the number to hit and miss by what would normally be considered a large margin.
No major data expected during the trading day, but from 19:15 to 20:00 NZT we have a slew of European PMI data. CAD CPI follows at 00:30.
Global equity markets were higher, records for the S&P and Dow again- Dow +1.08%, S&P 500 +0.86%, FTSE +0.49%, DAX +0.88%, CAC +1.07%, Nikkei +0.01%, Shanghai -0.06%.
Gold prices are pretty flat, up 0.2% to USD$1,211 an ounce, while WTI Crude Oil prices have dropped off, down 0.5% to US$70.80 per barrel.
Current indicative rates:
| NZDUSD | 0.6692 | 1.1% |
| NZDEUR | 0.5681 | 0.3% |
| NZDGBP | 0.5042 | 0.2% |
| NZDJPY | 75.24 | 1.3% |
| NZDAUD | 0.9179 | 0.8% |
| NZDCAD | 0.8638 | 1.0% |
| GBPNZD | 1.9833 | -0.2% |
Upcoming Data releases (NZST):
- 19:15-20:00 French, German, Flash PMI
- 00:30 CAD CPI m/m, Core 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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