By Kymberly Martin
NZ Dollar
The NZD/USD has trade a relatively tight range over the past 24-hours to sit marginally higher, at 0.8380, this morning.
With no scheduled domestic data releases yesterday, the focus was across the Tasman on the release of AU capex data.
The stronger than expected data took an abrupt toll on the NZD/AUD as the AUD gapped higher.
However, this proved relatively short-lived with the NZD/AUD finding its feet in the early evening. Subsequently the cross has drifted down to trade at 0.8960 currently.
NZD/AUD support is now seen at 0.8940. Resistance will likely be encountered approaching 0.9040.
The AU data release however helped support the NZD against the USD.
The NZD/USD made highs above 0.8400 last evening, before returning to sit at 0.8380 currently.
The domestic focus today will be the NZ ANZ business confidence survey. We will not be surprised to see this come off the boil a fraction more, given its current levels still provide upside risk to our own, and the RBNZ’s GDP growth forecasts.
Still, a lower reading for headline activity (45.1 previously) may not be seen in this way by the market.
It may just be seen as another excuse to sell the NZD.
NZD/USD support is seen at 0.8310 and resistance at 0.8410.
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
----------------------------------------------------------
Majors
Currencies have traded fairly tight ranges over the past 24-hours. The USD index sits little changed at 82.50 this morning.
Overnight the mood in markets was somewhat subdued. Equities provided negative returns, with the Euro Stoxx 50 down 0.9% and the S&P currently down 0.2%. On the geopolitical front, headlines announced Ukraine President Poroshenko cancelled a trip to Turkey due to Russian troop movements into Ukraine.
The USD index touched intra-night lows ahead of data showing upward revisions to US Q2 GDP, from 4.0% to 4.2% (3.9% expected). US July pending home sales were also stronger than expected at 3.3%m/m (0.5% expected). From below 82.35 the USD index has traded back up to 82.50.
Data overnight showed the German unemployment rate steady at 6.7% in August. The broader Eurozone measure will be released tonight. It will no doubt simply serve to highlight the still yawning gap between unemployment in Germany and the rest of the Eurozone. Eurozone CPI for August will also be released. Consensus expects a steady 0.8% reading, sufficiently subdued to keep the ECB well on track with its asset purchase plans. The EUR/USD sits a little lower, at 1.3180, this morning.
The AUD gapped higher yesterday afternoon following the release of AU capital expenditure data. Capex rose 1.1% in June (consensus -0.9%). It was also encouraging that capex expectations for 2014/15 were revised up from $A136b to $A145b. The AUD/USD jumped from 0.9340 to above 0.9370, before consolidating around 0.9360 overnight. Today, AU private credit data will be released.
Tonight, aside from Eurozone data, the US Chicago PMI and University of Michigan consumer confidence survey are also due.
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.