The NZDUSD opens at 0.6745 (mid-rate) this morning.
Although expected yesterday’s disappointing quarterly survey of business opinion has seen the NZD slip lower with market expectations of a rate cut on 8th May now 50% priced in.
This morning’s Global Dairy Trade auction resulted in a 9th consecutive rise in the overall index with prices inching up 0.8% from the previous auction a fortnight ago.
A total of 17,854MT of product was sold at today’s event with butter once again the big mover, up 5.0%. Skim milk powder (SMP) prices rose 1.8% with whole milk powder (WMP) unexpectedly declining 1.3%.
As widely expected the Reserve Bank kept its benchmark interest rate unchanged at 1.5% with policy makers noting that although the labour market remains strong inflation and wage growth remain low and are only expected to rise gradually. The RBA remains concerned about downside risks to the global economy believing that these have increased recently.
The US Commerce Department manufactured durable goods report showed orders fell slightly less than expected in February. Orders were down 1.6% following a downwardly revised 0.1% increase in January. Economists had forecast orders to fall 1.8% in January from the previously reported 0.3% increase in January.
The British pound has pushed higher after Theresa May announced that she is willing to meet with Labour leader Jeremy Corbyn in an attempt to agree a revised exit plan. May has also said she will seek a further extension beyond the April 12th deadline but before to the European elections on 22nd May to present any agreed plan.
Global equity markets are mixed, - Dow -0.354, S&P 500 -0.05, FTSE +1.01%, DAX +0.62%, CAC +0.33%, Nikkei -0.02%, Shanghai +0.20%.
Gold prices are inching higher, up 0.2% trading at $1,290 an ounce. WTI Crude Oil prices continue to rise, currently up 1.2% trading at $62.42 a barrel.
Current indicative rates:
Upcoming Data releases (NZST):
- 13:00 - ANZ Commodity Prices m/m
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