The NZDUSD opens at 0.7875 this morning.
The EURUSD fell after data showed German annual inflation slowed to 0.5% from 0.6% in October, raising deflation fears and fuelling speculation the European Central Bank will ease monetary policy more aggressively to boost inflation and economic growth.
The NZDUSD hit an overnight high of 0.7922 before trading lower after the weak German inflation data.
NZ trade balance posted its first deficit in 10 months yesterday, primarily due to much reduced dairy export receipts.
Oil prices plunged 6.5% overnight after the Saudis blocked a proposed OPEC output cut. Falling oil prices add to the downside risk for inflation and reduces the chance of an interest rate hikes.
Global equity markets were mixed on the day – Dow +0.1%, Nikkei -0.8%, Shanghai +1.2%, FTSE-0.1%, DAX +0.6%
Gold prices dropped 0.7% to USD$1,190. Oil prices plunged 6.5% on the day.
The current indicative mid-rates are:
NZDUSD 0.7875
NZDEUR 0.6315
NZDGBP 0.5005
NZDJPY 92.75
NZDAUD 0.9210
NZDCAD 0.8930
NZ Building Consents will be released at 10:45am this morning, followed by ANZ Business Confidence figures at 1:00pm.
European inflation numbers hit the tapes tonight. There is nothing on the US data schedule as most of the US extends their Thanksgiving holiday into a 4 day weekend.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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