The NZDUSD opens at 0.6685(mid-rate) this morning.
Japanese banks were closed in observance of National Foundation Day yesterday and Chinese banks are closed all this week for their Spring Festival. The lower liquidity creates irregular volatility in the markets, with the USD/JPY down 5.2% this week.
In the US the unemployment Insurance weekly claims were better than expected. In the week ending February 6, the advance figure for seasonally adjusted initial claims was 269,000, a decrease of 16,000 from the previous week’s unrevised level of 285,000.
US Natural gas prices moved lower as US supplies decline by 70 billion cubic feet.
Federal Reserve Chair Janet Yellen testimony continued this morning at 4am. The committee held a question and answer session and since the questions are not known beforehand, they can make for some unscripted moments that lead to heavy market volatility. The kiwi finished up 0.4% from yesterday’s open after trading a 2.3% range on the day.
Gold rallied from a 1191 low yesterday morning to touch on a 1263 high overnight before retracing to the opening price of 1247 rounding out a 6% range for the day.
Global equity markets are sharply lower : Dow -1.95%, S&P 500 -1.49%, FTSE -2.39%, DAX -2.9%, CAC -4.05%, Nikkei -2.31%, Shanghai Closed.
Gold prices rallied strongly to $1247 an ounce – up 4.7%, WTI Crude Oil is sharply lower at $26.71 a barrel, down 3.7%.
Current indicative rates:
NZDUSD 0.6635 0.2%
NZDEUR 0.5875 -0.9%
NZDGBP 0.4590 -0.1%
NZDJPY 76.18 -0.4%
NZDAUD 0.9395 0.4%
NZDCAD 0.9205 -0.4%
Upcoming data releases (NZST)
- 10:45 – FPI m/m
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