The NZDUSD opens at 0.6975 (mid-rate) this morning.
Global sentiment has improved over the past 24hrs with oil prices breaking up through $50 a barrel, helping to push equity markets and commodity-linked currencies higher.
Yesterday afternoon the Reserve Bank of Australia kept their OCR unchanged at 1.75% and signalled there won’t be another cut anytime in the near future, the AUD was immediately higher in reaction, taking the NZD with it.
Overnight Euro-zone GDP was upwardly revised from the previous reported 0.5% to 0.6% for the first quarter.
Tomorrow morning’s RBNZ Rate Statement will be the main driver for the NZD with the market currently pricing in a 40% chance of a 25 basis point rate cut.
Global equity markets are broadly higher- Dow +0.39%, S&P 500 +0.41%, FTSE +0.18%, DAX +1.65%, CAC +1.19%, Nikkei +0.58%, Shanghai +0.07%.
Gold prices are holding steady currently trading at $1245 an ounce, WTI Crude Oil has broken up through $50 currently trading at $50.37 a barrel
Current indicative rates:
NZDUSD 0.6975 0.6%
NZDEUR 0.6140 0.6%
NZDGBP 0.4795 0.0%
NZDJPY 74.83 0.3%
NZDAUD 0.9348 -0.6%
NZDCAD 0.8902 0.2%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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