The Opening Bell: Where currencies start on Thursday, May 9, 2019

The Opening Bell: Where currencies start on Thursday, May 9, 2019

By the XE Corporate team

The NZDUSD opens at 0.6575 (mid-rate) this morning.

Following the decision by the RBNZ monetary policy committee to cut the OCR by 25bps and signalling a further interest rate cut is likely over coming months, the NZD tumbled to fresh multi-month lows trading down to 0.6530 against the USD before just as quickly reversing and trimming its losses by 50%.

“The Monetary Policy Committee decided a lower OCR is necessary to support the outlook for employment and inflation consistent with its policy remit.” Although employment is near its maximum sustainable level, the outlook for employment growth is more subdued and capacity pressure is expected to ease slightly in 2019. Consequently, inflationary pressure is expected to rise only slowly, according to the accompanying statement. The Reserve bank also cited external headwinds, including lower global growth as external factors prompting the cut.

A lack of progress in talks between the Government and Labour to break the Brexit deadlock has increased the pressure on UK Prime Minister Theresa May to step down and seen the British pound once again lose ground against the majors. Time is quickly running out for the UK to agree on a new Brexit plan and present it to the EU before European elections on the 23rd May.

Trade talk headlines are likely to dominate markets for the rest of the week with Chinese negotiators currently heading to Washington to resume talks and stave off trump’s threat of higher tariffs on $200 billion worth of Chinese goods.

Global equity markets are mixed, - Dow +0.32%, S&P 500 +0.20%, FTSE +0.15%, DAX +0.72%, CAC +0.40%, Nikkei -1.46%, Shanghai -1.12%.

Gold prices have edged lower, down 0.3% trading at $1,280 an ounce. WTI Crude Oil prices are retracing yesterday’s fall, up  1.0% Trading at $62.10 a barrel.

Current indicative rates:

NZDUSD 0.6575 -0.5%
NZDEUR  0.5873 -0.5%
NZDGBP 0.5052 0.1%
NZDJPY 72.37 -0.6%
NZDAUD 0.9408 -0.1%
NZDCAD 0.8861 -0.4%
GBPNZD 1.9794 -0.1%

Upcoming Data releases (NZST):

  • 13:30 - CNY CPI

 

 

To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.

Email:  

Marcus Phillips is the Affiliate manager at xe money transfer in Auckland. You can contact him here »

Daily exchange rates

Select chart tabs »

The 'US$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'AU$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'TWI' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥en' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥uan' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '€uro' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'GBP' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'Bitcoin' chart will be drawn here.
Loading...
USD 
NZD
End of day UTC
Source: CoinDesk

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.