The Opening Bell: Where currencies start on Wednesday, May 29, 2019

The Opening Bell: Where currencies start on Wednesday, May 29, 2019

By the XE Corporate team

The NZDUSD opens flat at 0.6542 this morning.

It was another benign night on the currency markets. The USD edged higher against a basket of currencies, but was flat relative to the NZD ahead of a busy day on the domestic data front (see below).

The USD and US Treasuries benefitted from ‘safe haven’ buying amid China-US trade tensions, to which there is no end in sight, and a strong rise in US consumer confidence.

The yield on the benchmark 10-year US Treasury fell to 2.26%, a level last seen in October 2017, and is now 9 basis points below the rate on the US 3-month bills. This inversion is often a sign of an impending recession.

The EUR weakened as the markets remain uneasy about the future of the EU as Eurosceptic and right-wing parties gained seats during the past weekend’s European parliamentary elections. In addition, Italian Deputy Prime Minister said the European Commission could fine Italy EUR 3 billion for breaking EU debt and deficit rules.

The GBP languished near 4-month lows against the USD as the jockeying and promises ramp up in the race for the UK Prime Ministership. Some candidates have announced they will be happy with a no-deal Brexit, should they get the top job.

It is busy day on the domestic data front:
  9am - RBNZ Financial Stability Report,
  11am - RBNZ Governor Adrian Orr press conference on the Stability Report,
  1pm - ANZ Business Confidence figures,
  1:10pm – Governor Orr testifies before Parliament on the Stability Report.

Global equity markets were mostly lower on the day - Dow -0.5%, S&P 500 -0.5%, FTSE -0.1%, DAX -0.4%, CAC -0.4, Nikkei +0.3%, Shanghai +0.6%.

Gold prices fell 0.5%% to USD$1,279 an ounce. WTI Crude Oil prices dipped 0.3% to US$58.98 per barrel.

Current indicative rates:

NZDUSD 0.6542 0.0%
NZDEUR  0.5861 0.3%
NZDGBP 0.5170 0.2%
NZDJPY 71.58 -0.1%
NZDAUD 0.9451 -0.1%
NZDCAD 0.8832 0.4%
GBPNZD 1.9342 -0.2%

Upcoming Data Releases (NZT):

  • 9:00am  - RBNZ Financial Stability Report,
  • 11:00am - RBNZ Governor Adrian Orr press conference on the Stability Report,
  • 1:00pm - ANZ Business Confidence figures,
  • 1:10pm - Governor Orr testifies before Parliament on the Stability Report.

 

 

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.