The NZDUSD opens at 0.7058 (mid-rate) this morning.
The NZD has made steady gains against the majority of its trading rivals (the JPY being the exception) as offshore economic data releases fell short of market expectations.
The JPY has been the best performing currency over the past 24hrs after the BOJ minutes stated that the “country’s economic recovery is continuing at a moderate pace”. The report went on to say that exports mainly led by automobile-related exports had picked up and should continue to pick-up for the time being.
US existing home sales plummeted by 3.7% in the month of February to an annual rate of 5.48million after increasing by 3.3% to an annual rate of 5.69million in January. The report had been expected to show sales dropping to an annual rate of 5.58 million.
The Euro-zone current account surplus fell to its lowest level in 15mths with the European Central Bank reporting the surplus at 24.1billion in January down from 30.8billion in December.
We expect the RBNZ to keep the Official Cash Rate unchanged at 1.75% at this morning’s meeting, and direction for the NZD will be driven by Governor Wheeler’s accompanying statement.
Going forward we expect markets to trade sideways ahead of tomorrow’s crucial US health bill vote. At this stage it remains unclear whether or not Donald Trump has the votes to repel Obamacare.
Global equity markets have slipped lower- Dow -0.23%, S&P -0.05%, FTSE -0.73%, DAX -0.48%, CAC -0.15%, Nikkei -2.13%, Shanghai -0.50%.
Gold prices are holding steady at $1,250 an ounce, WTI Crude Oil has clawed back yesterday’s fall currently up 1.6% at $48.15 a barrel.
Current indicative rates:
NZDUSD 0.7058 0.2%
NZDEUR 0.6538 0.3%
NZDGBP 0.5653 0.2%
NZDJPY 78.32 -0.6%
NZDAUD 0.9197 0.5%
NZDCAD 0.9418 0.1%
Upcoming Data releases (NZST)
- 09:00 – RBNZ Rate Announcement
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