The NZDUSD opens at 0.7880 this morning.
The main event over the weekend was the PBOC unexpectedly announcing a rate cut Friday evening.
Antipodean currencies bounced higher on this news expecting the decision to spur growth and fuel future demand for commodities.
Also helping the Kiwi were dovish comments from ECB’s Draghi which topped out close to the standing resistance at 0.7950 before tracking back down to current levels.
China Cuts Interest Rates For First Time Since 2012
Dollar Near 2-Year High Versus Euro As Draghi Talks Tough On Deflation
Global equity markets mainly up on the day – Dow +0.5%, Nikkei +0.3%, Shanghai +1.4% FTSE+1.8%, DAX +2.6%.
Gold prices finished up +0.6% at USD$1,201. Oil also finished up +0.5%.
The current indicative mid-rates are:
NZDUSD 0.7870
NZDEUR 0.6370
NZDGBP 0.5030
NZDJPY 92.90
NZDAUD 0.9080
NZDCAD 0.8850
New Zealand Visitor Arrivals m/m 10:45 am this morning.
German Ifo Business Climate results later this evening.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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