The NZDUSD opens at 0.6919 (mid-rate) this morning.
Markets have lacked direction and traded tight ranges in the absence of any notable economic data releases. The AUD has been the strongest of the G10 currencies recovering most of its fall following Tuesday’s RBA monetary policy statement, while the GBP is the worst performing of the G10 currencies weighed down by political uncertainty in the U.K., after the international development secretary Priti Patel came under fire over her undisclosed meetings with Israeli Prime Minister Benjamin Netanyahu.
The USD lost ground against all its major rivals after the Washington Post reported that Senate Republicans are considering the possibility of postponing the implementation of corporate tax cuts until 2019.
This morning the RBNZ are widely expected to keep the OCR unchanged at a record low of 1.75% with investors looking to the accompanying statement and shortly after the press conference for direction. Markets will be keen to hear what the Bank has to say on policy, particularly now with the new government proposing a significant jump in government spending.
Global equity markets remain mixed- Dow -0.05%, S&P 500 -0.05%, FTSE +0.22%, DAX +0.02%, CAC -0.17%, Nikkei -0.10%, Shanghai +0.06%.
Gold prices have bounced back from yesterday’s fall up 0.8% trading at $1,285 an ounce. WTI Crude Oil prices are little changed at $57.05 a barrel.
Current indicative rates:
NZDUSD 0.6919 0.3%
NZDEUR 0.5969 0.2%
NZDGBP 0.5281 0.7%
NZDJPY 78.71 0.2%
NZDAUD 0.9015 -0.2%
NZDCAD 0.8811 -0.1%
GBPNZD 1.8936 -0.7%
Upcoming Data releases (NZST):
- 09:00 - RBNZ Monetary Policy Statement
- 10:00 - RBNZ Press Conference
- 14:30 - CNY CPI
- 14:30 - CNY PPI
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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