The NZDUSD opens at 0.7625 this morning.
The RBNZ elected to hold the OCR at 3.5% yesterday which was the sixth straight month with no change.
They said “it would be appropriate to lower the OCR if demand weakens, and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target”.
This saw the NZD trade down to the high 0.75’s yesterday before settling at current levels above 0.7600.
Most commentators along with the Reserve Bank still see the NZD coming under further pressure in the months to come with direction being driven by speculation around the timing of future US rate hikes.
Global equity markets mixed on the day. Dow -1.20%, Nikkei -2.69%, Hang Seng -0.90% FTSE+0.21%, DAX +0.2%
Gold prices currently 0.00% at USD$1,183. Oil sitting down -0.7% at $59.6
The current indicative mid-rates are:
NZDUSD 0.7625
NZDEUR 0.6790
NZDGBP 0.4970
NZDJPY 91.10
NZDAUD 0.9650
NZDCAD 0.9226
Worth watching on the Day
China Manufacturing PMI 1:00pm
AUD PPI 1:30pm
GBP Manufacturing PMI 8:30pm
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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