The NZD has traded a 53 point range or 0.76% range in the last 24 hours and opens on the low. The 0.7376 high posted on Feb 7th, paired with the 0.6965 low now, represents a 411 point or 5.6% drop in the NZD/USD in one month.
Prices in the latest Global Dairy Trade (GDT) auction, the fifth sale of 2017, fell 6.3% following a 3.2% decline previously. There was a 12.4% decline in Whole Milk Powder prices in the latest auction to $2,782 per tonne while Skim milk powder prices fell 15.5%.
The decline in GDT prices was slightly better than expected by futures markets which had priced in an 8% decline. Prices have now dipped below March 2015 highs and the sharp retreat in this auction is likely to increase doubts surrounding the long-term recovery in prices.
Yesterday afternoon at 4:30pm the Reserve bank of Australia left their cash rate unchanged at a record low of 1.5%. The accompanying monetary policy statement cited that Interest Rates were consistent with GDP & CPI goals over time, and global economic conditions continued to improve.
Seasonally adjusted GDP rose by 0.4% in the Euro Area (EA19) and by 0.5% in the EU28 during the fourth quarter of 2016, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union.
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced overnight that the goods and services deficit or Trade Balance was $48.5 billion in January, up $4.2 billion from $44.3 billion in December which was revised.
Global equity markets are slightly mixed- Dow -0.06, S&P -0.13%, FTSE -0.15%, DAX +0.06%, CAC -0.35%, Nikkei -0.18%, Shanghai +0.26%.
Gold prices are lower currently down 0.7% trading at $1,217 an ounce, WTI Crude Oil is up 0.2% trading at $53.27 a barrel.
Current indicative rates:
NZDUSD 0.6965 -0.4%
NZDEUR 0.6592 -0.3%
NZDGBP 0.5711 -0.1%
NZDJPY 79.44 -0.4%
NZDAUD 0.9172 -0.7%
NZDCAD 0.9351 -0.4%
Upcoming Data releases (NZST):
- 10:45am – NZD – Manufacturing Sales q/q
- 12:50pm – JPY – Final GDP q/q & Trade Balance
- Tenatative – CNY -Trade Balance
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.