The NZDUSD opens lower at 0.8490 this morning.
The European Central Bank cut its interest rate by 0.25% overnight to an all-time low of 0.50%.
This was first ECB rate cut in 10-months, and held out the possibility of further rate reductions to stimulate the recession-hit euro zone’s economy.
The EURUSD & NZDUSD rallied higher when the ECB rate cut was announced, only to drop quickly after ECB President Mario Draghi said they were ready for negative interest rates and acknowledged downside risks to the economy.
Draghi also promised to provide the euro zone banks with as much liquidity as they needed and to help small companies get access to credit to prevent further economic malaise. The NZDUSD subsequently traded to a low of 0.8460.
The Gold price rose 0.7% to USD$1466 an ounce, while Copper & Oil prices jumped higher
Global equity market were generally higher on the day, with the US equity indices up circa 1% being the most notable.
The NZD opens at 0.8490 USD, 0.8285 AUD, 0.6500 EUR, 0.5465 GBP, & 83.15 JPY.
There is no domestic data on the calendar today.
The influential and closely watched US nonfarm payrolls employment numbers will be released tonight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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