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The Opening Bell: Where currencies start for Thursday, October 2, 2014

Currencies
The Opening Bell: Where currencies start for Thursday, October 2, 2014

By Dan Bell

The NZDUSD opens at 0.7797 this morning.

The NZDUSD traded to a high of 0.7855 late yesterday evening as investors trimmed their long USD positions ahead of this week’s key data releases (ECB monetary policy meeting tonight and Friday nights US no- farm payrolls).

Following another disappointing Fonterra Auction (overall price index down 7.3%, milk powder down 10%) the NZDUSD dropped sharply back below 0.7800.

The overnight US data releases were mixed, whilst the ADP Non-Farm Employment Change came in stronger than expected 213k vs. 207k, both construction spending and Manufacturing PMI were below forecasts.

Global equity markets are broadly lower  - Dow -1.35%, Nikkei -0.56%, Shanghai closed, FTSE -0.98% DAX -0.97%, CAC -1.15%

Gold is up $6.00 to $1215, Oil prices continue to fall currently down  0.63% to  $90.59

The current indicative mid-rates are:

NZDUSD           0.7797
NZDEUR           0.6183
NZDGBP           0.4818
NZDJPY            85.21
NZDAUD           0.8902
NZDCAD           0.8715

Data Releases:
1:00pm ANZ Commodity Prices m/m

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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »

Daily exchange rates

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Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: RBNZ
Source: CoinDesk

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