The NZDUSD opens at 0.7132 (mid-rate) this morning.
The Kiwi opens modestly higher against all its major trading partners, and is up sharply again, against the GBP.
Global equity markets continue to head higher, however the rate of ascent was less steep overnight. Most of the losses, that were triggered by the unexpected decision from British voters to exit the European Union, have been recouped. The Bank of England Governor Mark Carney hinted at providing further stimulus over the next few months.
In the week ending June 25, the advance figure for seasonally adjusted U.S. Unemployment claims was 268,000, an increase of 10,000 from the previous week’s revised level. This marks 69 consecutive weeks of initial claims below 300,000, the longest streak since 1973.
The Chicago Business Barometer or Purchasing Managers Index (PMI) rose 7.5 points to 56.8 in June from 49.3 in May, the highest since January 2015, led by strong gains in New Orders and Production. June’s rebound was just enough to offset the previous two months of weakness, leaving the Barometer broadly unchanged over the quarter at an average of 52.2 in Q2 compared with 52.3 in Q1. New Orders increase to the highest since October 2014.
The GBP continues to weaken against a basket of currencies. Boris Johnson rules himself out of the race to be UK Prime Minister citing he couldn’t bring the unity of the Party, and fulfil the mandate of the people. Michael Gove and Theresa May are the early frontrunners for the job.
Global equity markets are broadly higher overnight : Dow +1.15%, S&P 500 +1.11%, FTSE +2.27%, DAX +0.71%, CAC +1.00%, Nikkei +0.06%, Shanghai -0.07%.
Gold prices are down $3 or 0.2% trading $1,320 an ounce, WTI Crude Oil is sharply lower currently down 2.3% trading at $48.42 a barrel.
Current indicative rates:
NZDUSD 0.7132 0.2%
NZDEUR 0.6432 0.4%
NZDGBP 0.5373 1.5%
NZDJPY 73.61 0.8%
NZDAUD 0.9576 0.1%
NZDCAD 0.9240 0.1%
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