The NZDUSD opens at 0.6912 (mid-rate) this morning.
The NZD continues to consolidate ahead of this afternoon’s RBNZ monetary policy statement, when reserve bank governor Adrian Orr is expected to keep the official cash rate unchanged at 1.75%. Investors will look to the accompanying press conference for clues as to whether the RBNZ is likely to keep rates stable through 2019-2020 in the wake of global growth concerns and domestic considerations.
Yesterday’s Euro rally proved to be short-lived after Germany’s forward-looking consumer confidence index fell to 10.4 from a downwardly revised 10.7 in March. The disappointing result was in stark contrast to yesterday’s better-than-expected business confidence report and has seen the Euro reverse yesterday’s gains.
This morning’s US economic data releases were underwhelming with both housing starts and consumer confidence reports falling short of economists’ estimates.
According to the latest Commerce Department figures housing starts tumbled by 8.7% to an annual rate of 1.162 million in February after surging up by 11.7% to a revised rate of 1.273 million in January. Economists had forecast the rate to edge down to 1.213 million from the 1.230 million originally reported for the previous month.
US consumer confidence in the month of March unexpectedly declined with the Conference Board reporting its consumer confidence index fell to 124.1 in March after jumping to 131.4 in February. Economists had expected the index to rise to 133.0.
The British pound remains in limbo with the Commons due to vote on alternative Brexit plans after MP’s seized control of Brexit, winning yesterday’s key vote by 329 votes to 302.
Global equity markets are broadly higher, - Dow +0.52, S&P 500 +0.67, FTSE +0.26%, DAX +0.64%, CAC +0.89%, Nikkei +2.15%, Shanghai -1.51%.
Gold prices have given back yesterday’s gains higher, down 0.6% trading at $1,314 an ounce. WTI Crude Oil prices are up 1.3% overnight, trading at $60.04 a barrel.
Current indicative rates:
Upcoming Data releases (NZST):
- 14:00 - RBNZ Monetary Policy Statement
- 15:00 - RBNZ Press Conference
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