The NZDUSD opens lower at 0.7815 this morning.
Yesterday’s benign Q3 inflation figures sparked a sharp sell-off across the board in the NZD. The headline number came in at +0.3% for the quarter (consensus was +0.5%) - inflation poses no immediate threat; consequently the RBNZ will be in no hurry to raise interest rates in the near term.
Euro-zone data was mixed, while positive data from the US helped to boost sentiment and the USD.
Global equity markets were mostly higher on the day – Dow +1.4%, Nikkei -0.4%, Shanghai -1.0%, FTSE+0.3%, DAX +1.2%
Gold prices fell 0.7% to USD$1231. Oil prices gained over 2.0% on the day.
The current indicative mid-rates are:
NZDUSD 0.7815
NZDEUR 0.6175
NZDGBP 0.4875
NZDJPY 84.45
NZDAUD 0.8925
NZDCAD 0.8775
NZ Trade Balance will be released at 10:45am this morning.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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