The NZDUSD opens at 0.7141 (mid-rate) this morning.
Friday’s disappointing US jobs report has seen broad-based USD weakness with the NZD consolidating close to 0.7150.
The US nonfarm payroll report for the month of May came in well below the market’s expectations pushing the US dollar index (DXY) down towards 6month lows. The report showed a sharp deceleration from an average of 181k jobs over the past 12 months with an increase of only 138k for May following on from a 174k in April.
Overnight US economic data releases were roughly in line with expectations with the ISM non-manufacturing index edging down to 56.9 in May from 57.5 in April (economists had forecast the index to dip to 57.0). As expected US factory orders nudged down by 0.2% in April after jumping by an upwardly revised 1.0 % in March.
The UK services PMI slowed more than expected in May with the business activity index falling to 53.8 after rising to 55.8 in April. Economists had expected the index to dip to 55.1.
The key domestic driver for the NZD this week is likely to be tonight’s GDT auction while this afternoons RBA rate statement should dictate direction for the NZDAUD cross rate.
Global equity markets are lower Dow -0.04%, S&P 500 -0.07%, FTSE -0.29%, DAX Closed, CAC -0.66%, Nikkei -0.03% Shanghai -0.45%.
Gold prices have edged higher, trading at $1,279 an ounce .WTI Crude Oil prices continue to fall currently trading at $47.24 a barrel.
Current indicative rates:
NZDUSD 0.7141 1.1%
NZDEUR 0.6346 -0.7%
NZDGBP 0.5532 0.9%
NZDJPY 78.89 0.3%
NZDAUD 0.9539 -0.4%
NZDCAD 0.9625 0.8%
GBPNZD 1.8076 -0.4%
Upcoming Data releases (NZST):
- 13:00 – ANZ Commodity Prices m/m
- 14:30 – RBA Rate Statement
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