By Dan Bell
The NZD/USD opens around 0.8475 after trading to a low of 0.8405 yesterday afternoon and an interbank high of 0.8489 overnight.
Fonterra Global Dairy Trade Auction overnight showed average prices up 3.1% since the last auction.
Fonterra denied a dodgy news report that NZ milk powder imports were being destroyed in China. The NZD came under selling pressure after the bogus news report did the rounds yesterday.
The Stoxx Europe 600 index closed up 1.1% on better than expected German data. Data from the Centre for European Economic Research showed economic expectations in Germany reaching their highest point in nearly 3 years.
The economic expectations index climbed to 48.2, beating a forecast of 35.0 and a reading of 31.5 in January.
US stocks are trading in positive territory with the S&P 500 up 0.65% trading at fresh 2 year highs.
The NZD is up against most major currencies in the last 24 hours and opens at current indicative mid rates: 0.8185 AUD, 0.6336 EUR, 0.55 GBP, 79.25 JPY.
From NZ today we get PPI data at 10:45am. Not expected to be a market mover. A 3:30pm RBNZ Governor is speaking at the NZ Employers Manufacturers and Exporters Association in Auckland. The high NZD is expected to be a key topic of his speech.
------------------------------------------------------------
To subscribe to our daily Currency Rate Sheet email, enter your email address here.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
No chart with that title exists.
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.