The NZDUSD opens at 0.6798 (mid-rate) this morning.
The British pound is the biggest mover overnight, falling sharply after data from the Office for National Statistics showed consumer inflation grew less than expected in June.
The report showed consumer prices increased by 2.4% y/y in June below the forecast of a 2.6% increase and at the growth rate as the previous two months. The month on month data was also shy of expectations, remaining flat, while economists had forecast a 0.2% increase. Core inflation that excludes energy, food, alcohol and tobacco edged down to 1.9% in June from 2.1% in May. The data has dented hopes that the Bank of England will hike interest rates at next month’s meeting.
Euro-zone CPI printed as expected with the Eurostat report showing consumer prices increased by 2% y/y in June while core inflation edged down to 0.9% from its preliminary reading of 1%. The data release had little effect on the currency.
This morning’s monthly Australian employment report should prove to be the highlight during our trading and will dictate short-term direction of the NZDAUD cross rate.
Global equity markets continue to rise, - Dow +0.26%, S&P 500 +0.15%, FTSE +0.65%, DAX +0.82%, CAC +0.46%, Nikkei +0.43%, Shanghai -0.39%.
Gold prices are unchanged trading at $1,227 an ounce WTI Crude Oil prices have edged higher, up 0.3% overnight trading at $67.68 a barrel.
Current indicative rates:
| NZDUSD | 0.6798 | 0.3% |
| NZDEUR | 0.5836 | 0.3% |
| NZDGBP | 0.5206 | 0.7% |
| NZDJPY | 76.68 | 0.2% |
| NZDAUD | 0.9181 | 0.0% |
| NZDCAD | 0.8954 | 0.0% |
| GBPNZD | 1.9208 | -0.7% |
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »
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.