The Opening Bell: Where currencies start on Wednesday, July 26, 2017

By Dan Bell

The NZDUSD opens at 0.7416 (mid-rate) this morning.

The NZD is modestly lower against all the majors except the Japanese Yen overnight. The JPY was the big mover, weakening 0.9% against the US Dollar testing just shy of 112.00.

HIFX is hosting a breakfast this morning in Auckland, with RBNZ Assistant Governor John McDermott speaking about monetary policy, economic trends and how they help implement the bank’s flexible inflation targeting framework.

U.S. Consumer Confidence index rose in July to the second highest level in 16 years as Americans shrugged off all the political drama and took heart in the best labour market in a decade. The index rose to 121.1 this month from 117.3 in June. The increase exceeded the 116.9 forecast of economists.

U.S. House Price Index (HPI) is up 0.4% in May from April seasonally adjusted. The previously reported 0.7% increase in April was revised downward to a 0.6% increase. From May 2016 to May 2017, house prices were up 6.9%.

U.S. Major Metro area home prices, an index which covers home prices in 20 cities across the U.S. was up 5.7% in May year over year, a decline from April’s 5.8%.

The U.S. Fifth District Manufacturers composite index rose from 11 in June, to 14 in July, the result of a slight increase in the measures of new orders and employment.

Thursday’s FOMC monetary policy statement is the key focus for the remainder of the week.

Global equity markets are higher with only Asia the exception:  Dow 0.52%, S&P 500 +0.34%, FTSE +0.77%, DAX +0.45%, CAC +0.65%, Nikkei -0.10%, Shanghai -0.21%.

Gold prices are down $4 or 0.3% trading at $1,250 an ounce .WTI Crude Oil prices have surged higher, up 3.3% at $47.86 a barrel.

Current indicative rates:

NZDUSD       0.7416      -0.2%
NZDEUR       0.6363      -0.3%
NZDGBP       0.5687      -0.3%
NZDJPY         82.93        0.4%
NZDAUD       0.9340      -0.4%
NZDCAD       0.9274      -0.2%
GBPNZD       1.7584       0.3%

Upcoming Data releases (NZST):

  •  8:15am – NZD – RBNZ Assist Gov McDermott Speaks at HIFX hosted breakfast
  • 10:45am – NZD – Trade Balance

 

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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »

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