The NZD made gains across the board yesterday after the RBNZ gave a relatively upbeat assessment of the NZ economy and outlook at its Official Cash Rate meeting. The OCR remained at 1.75%, as universally expected, the RBNZ said house price inflation had moderated, inflation would get into the middle of its target bank in the medium term, they would prefer a lower NZD, and that rates interest rate would remain unchanged for a “considerable period”.
The NZDAUD rose to a 5 month high of 0.9635 post the RBNZ OCR decision.
The USD was little changed against most currencies overnight as US jobless claims and home prices releases’ were in-line with expectations.
Interestingly, longer term US interest rates fell (yield curve flattened) which can be interpreted as the market being sceptical that the current pace of US economic growth justifies further rate increases.
There was little else of note during the overnight session.
Global equity markets were mixed on the day – Dow +0.0%, Nikkei -0.1%, Shanghai -0.3%, FTSE -0.1%.
Gold prices gained 0.4% to USD$1,250.60 an ounce. Oil prices (WTI) rose 0.2% to USD$42.77 per barrel.
Have a nice weekend.
Current indicative rates:
NZDUSD 0.7261 0.5%
NZDEUR 0.6511 0.6%
NZDGBP 0.5723 0.3%
NZDJPY 80.78 0.4%
NZDAUD 0.9631 0.7%
NZDCAD 0.9612 -0.2%
GBPNZD 1.7470 -0.3%
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