The NZDUSD opens at 0.8405 this morning, ahead of the RBNZ cash rate and statement at 9:00am.
The NZDUSD traded to a 0.8364 low last night before bouncing back to 0.8416.
The NZDUSD took another short, sharp dip to 0.8390 at 5am on a bogus report on Twitter by Associated Press that there had been 2 explosions at the White House. Turns out AP’s Twitter account has been hacked.
The EUR/USD fell to a 2-week low after weak German data raised further concerns about the health if the euro zones economy and increased the probability that the European Central Bank could cut interest rates.
The RBNZ is widely expected to keep rates at 2.50% at this mornings meeting. However, the accompanying statement will be examined with interest to ascertain the RB’s views on the future path of interest rates and inflation.
They are likely to mention the NZD, on a trade weighed basis, is too high, but we have heard this before and it had very limited impact.
Gold price fell almost 1% to USD$1413. Copper dropped 1% to a fresh 18-month low, and Nickel & Tin fell by similar percentage.
Global equity markets showed strong gains. The Euro Stoxx 50 index screamed 3.1% higher, while the USD indices climbed 1% (having dropped 1.2% of the false AP report).
The NZD opens at 0.8405 USD, 0.8190 AUD, 0.6460 EUR, 0.5515 GBP, & 83.50 JPY.
The RBNZ cash rate decision and statement will be released at 9am. Rates will remain at 2.5%.
Australian inflation figures hit the tapes at 1:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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