The NZDUSD opens at 0.6635 (mid-rate) this morning.
There was more good news for the USD on Friday evening with the US GDP data printing ahead of expectations.
The US Commerce Department report showed real gross domestic product increased by 2.1% in the second quarter following on from a 3.1% spike in Q1. A spike in the pace of growth in consumer spending, which rose by 4.3% along with a 7.9% increase in federal government spending were the main contributors to the result. Economists had forecast the pace of GDP growth to slow to 1.9%.
Uncertainties and downside risks surrounding Brexit have seen Euro-zone inflation expectations continue to weaken according to Friday’s ECB survey. The results which came hot on the heels of the ECB monetary policy statement support the Central Bank’s easing policy which could see interest rates cut further in the near future.
US China trade negotiations are set continue this week although expectations of solving the impasse between the countries are low. A trade delegation from the US will meet with their Chinese counterparts in Shanghai for further talks on Wednesday.
Monetary policy statements out of the BOJ, BOE and Federal Reserve will dominate markets this week with the Federal Reserve policy decision attracting the most interest with economists divided as to whether the Fed will cut by 25bps or 50bps.
Global equity markets were broadly higher on Friday, - Dow+0.19%, S&P 500 +0.73%, FTSE +0.80%, DAX +0.47%, CAC+0.57%, Nikkei -0.45%, Shanghai +0.24%.
Gold prices edged higher on Friday closing out the week at $1,418 an ounce. WTI Crude Oil prices again moved higher on Friday, closing out the week at $56.33 a barrel.
Current indicative rates:
| NZDUSD | 0.6635 | -0.3% |
| NZDEUR | 0.5961 | -0.2% |
| NZDGBP | 0.5358 | 0.2% |
| NZDJPY | 72.09 | -0.4% |
| NZDAUD | 0.9599 | 0.2% |
| NZDCAD | 0.8788 | 0.3% |
| GBPNZD | 1.8664 | -0.2% |
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »
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