The NZDUSD opens at 0.6918 (mid-rate) this morning.
The NZD has continued to push higher ahead of this morning’s RBNZ financial stability report. This morning’s six monthly report is widely expected to confirm the RBNZ’s current view that it sees inflation returning back to target by the middle of next year, while also outlining a roadmap for the removal of LVR restrictions.
As I type news that British and EU negotiators have agreed in principle a divorce settlement figure reported to be between GBP 45bn and GBP 55bn has seen the pound rise sharply. Both parties have confirmed that the terms of the agreement were agreed at a meeting in Brussels at the end of last week.
Overnight US consumer confidence for the month of November unexpectedly spiked to a 17 year high. The Conference Board reported the consumer confidence index hit 129.5 in November following on from an upwardly revised 126.2 in October. Economists had forecast the index to pull back to 124.5 from the previously reported 125.9 reading in October.
Federal Reserve Chair nominee Jerome Powell this morning confirmed that the case for a December interest rate hike is "coming together," and that the Fed will continue reducing its $4.5 trillion balance sheet in a process that is expected to take three or four years.
Global equity markets have bounced back following yesterday’s fall - Dow +061%, S&P 500 +0.49%, FTSE +1.04%, DAX +0.46%, CAC +0.57%, Nikkei -0.04%, Shanghai +0.34%.
Gold prices are unchanged at $1,295 an ounce. WTI Crude Oil prices edged lower down 0.2%, currently trading at $57.86 a barrel.
Current indicative rates:
NZDUSD 0.6918 0.1%
NZDEUR 0.5832 0.5%
NZDGBP 0.5189 0.1%
NZDJPY 76.98 0.3%
NZDAUD 0.9096 0.2%
NZDCAD 0.8861 0.6%
GBPNZD 1.9272 -0.1%
Upcoming Data releases (NZST):
- 09:00 - RBNZ Financial Stability Report
- 13:00 - RBNZ Gov Spencer Speaks
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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