The Opening Bell: Where currencies start on Thursday, May 23, 2019

The Opening Bell: Where currencies start on Thursday, May 23, 2019

By the XE Corporate team

The NZD opens at 0.6497.

Pretty quiet last 24 hours, with the Kiwi trading in tight ranges. We do however open under 0.6500, which psychologically is not going to be nice for importers to wake up to. NZ retail sales very slightly beat expectations yesterday, but not enough to drag the Kiwi out of the malaise.

We had the Feds meeting minutes just out, with the Fed stating “we don’t see a strong case for moving in either direction”. With the Fed pretty firmly on hold, and the RBA having 2 cuts priced in still, it is little wonder why we are down at the lows.

Because inflation has been so low for so long, central banks are leaning towards letting it overshoot their 2% target before they hike. They are of the view that they can only generally cut down to 0%, but they can raise interest rates as high as they like so containing inflation will be no problem. I think we all need to be a little wary here, as raising interest rates slow the economy, and practically a 10% interest rate is not going to be much fun. This is more a potential issue for the future, but just a reminder that this time is probably not different, where we currently sit is not going to last forever, and we are probably not on a permanently high plateau.

Global equity markets are generally higher overnight, - Dow -0.39%, S&P 500 -0.18%, FTSE +0.07%, DAX +0.21%, CAC -0.12%, Nikkei +0.05%, Shanghai -0.49%.

Gold prices are little changed at $1,273 an ounce. WTI Crude Oil prices are off though, down 2.6% trading at $61.35 a barrel.

Current indicative rates:

NZDUSD 0.6497 -0.1%
NZDEUR  0.5818 -0.2%
NZDGBP 0.5129 0.2%
NZDJPY 71.64 -0.4%
NZDAUD 0.9438 -0.1%
NZDCAD 0.8722 0.0%
GBPNZD 1.9494 -0.2%

Upcoming Data releases (NZST):

  • 19:45-20:00   French, German, Flash PMI

 

 

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.