The NZDUSD opens at 0.6875 (mid-rate) this morning.
Talk of a renewed coalition between Chancellor Angela Merkel's CDU/CSU conservatives and the centre-left Social Democrats along with strengthening German business confidence has seen the EUR surge higher.
The Social Democrats who had vowed to go into opposition following the September general election appeared to do a U-turn on Friday with SPD chief Martin Schulz announcing he was ready to enter talks with Angela Merkel's CDU/CSU conservatives in the hopes of forming an alliance.
Germany's business confidence strengthened to a new record high in November with the index peaking at 117.5 following on from an upwardly revised 116.8 in October. The index was expected to remain unchanged from October’s previously reported 116.7 reading.
As we enter month end the domestic driver for the NZD will be Wednesday’s RBNZ financial stability report followed by RBNZ Governor Grant Spencer’s testimony to the Parliament Select Committee.
Global equity markets with the exception of the FTSE inched higher on Friday, - Dow +0.14%, S&P 500 +0.21%, FTSE -0.10%, DAX +0.39%, CAC +0.20%, Nikkei +0.12%, Shanghai +0.06%.
Gold prices edged lower on Friday, down 0.3% closing out the week at $1,287 an ounce, WTI Crude Oil prices were up 0.7% on Friday, hitting a new 2 year high of $58.95 a barrel.
Current indicative rates:
NZDUSD 0.6875 -0.2%
NZDEUR 0.5765 -0.8%
NZDGBP 0.5157 -0.4%
NZDJPY 76.72 0.2%
NZDAUD 0.9031 0.0%
NZDCAD 0.8743 -0.1%
GBPNZD 1.9392 0.4%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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