The NZDUSD opens up 1.3% lower this morning at .6511
Overnight the NZDUSD was seen down at .6499, setting a new low dating back to July 2009.
Yesterdays worsening Global Dairy Auction followed by a softer inflation number has helped the NZD to continue its downward trend and thus giving the RBNZ more reasoning to lower rates over the coming months. Cuts are expected in July and September.
The above is also met with Fed Chair Yellen confirming the intention of raising interest rates this year and it is expected that the USD will continue to gain as ‘lift off’ begins come September.
As for Yellen’s second part of the speech taking place now, she is yet to give too much away except that jumping in too early could put recovery at risk and coming in too strong could be disruptive causing them to ‘overshoot’ its intention for employment and low and stable inflation.
AUD has started the day where it finished yesterday and thanks to the NZD weakness the NZDAUD is now at 2 week lows.
Greece’s place in the Euro is safe for now after further aid has been provided. It seems a three year package is in place worth near 86 billion Euros.
GBP has outperformed after BoE Carney is also seen talking positively over interest rate hike in the near future and markets see this taking place mid 2016.
World equity markets are in positive territory this morning: Dow +0.4%, S&P 500 +0.8%, FTSE +0.6%, DAX +1.5%, CAC +0.9%, Nikkei +0.7%, Shanghai +0.5%,
NZDUSD 0.6511 -1.3%
NZDEUR 0.5985 -0.6%
NZDGBP 0.4170 -1.1%
NZDJPY 80.77 -1.0%
NZDAUD 0.8790 -1.7%
World equity markets are in positive territory this morning: Dow +0.4%, S&P 500 +0.8%, FTSE +0.6%, DAX +1.5%, CAC +0.9%, Nikkei +0.7%, Shanghai +0.5%
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