The NZDUSD opens lower at 0.6617 this morning.
The NZDUSD continued to track lower, on the back of USD strength, after the US Federal Reserve Chairman Jerome Powell said yesterday that factors weighing on inflation might be “transitory” and that he saw no case for an interest rate move in either direction.
Adding to the cautiously bearish tone for the NZD is the real possibility the RBNZ will cut the Official Cash Rate by 0.25% at its meeting on Wednesday 8th May. The OCR currently stands at 1.75%.
The Reserve Bank of Australia has its own interest rate decision one day prior to the RBNZ. It too may lower rates by 0.25% - expect some market volatility next week!
The GBP fell after the Bank of England raised its growth forecasts but warned that Brexit uncertainty continues to cloud the outlook for monetary policy. The BoE voted to keep interest rates steady at 0.75%.
There are no data releases scheduled on the domestic calendar today. The highly influential and closely watched US non-farm payrolls employment figures hit the wires tonight, coupled with a series of US Fed members giving speeches.
Global equity markets were lower on the day - Dow -0.5%, S&P 500 -0.3%, FTSE -0.5%, DAX +0.0%, CAC -0.9%, Nikkei -0.2%, Shanghai +0.5%.
Gold prices were dropped 0.1% at USD$1,271 an ounce as the USD rallied. WTI Crude Oil prices plunged 3.3% to US$61.63 per barrel on ballooning US crude stockpiles and higher-than-expected Russian production.
Have a nice weekend.
Current indicative rates:
Upcoming Data releases (NZST):
- No local data today
- Overnight - US Non-farm Payrolls
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