By Dan Bell
The NZDUSD opens lower at 0.6751 this morning.
The NZDUSD fell to a 2-year low of 0.6745 overnight, as the USD strengthened across the board, despite US quarterly GDP numbers coming in below expectations.
Yesterday, the RBNZ kept the Official Cash Rate at 1.75%, as expected. They signalled no interest rate hike was on the horizon and that monetary policy would remain stimulatory for some time to come.
German inflation data surprised on the upside, but the EUR was pressured by concerns over a European Union leaders meeting on migration which German Chancellor Angela Merkel termed “make or break” for the EU.
The GBP fell on worries of lack of progress on Brexit talks, and the potentially negative impact on the UK economy if no deal is agreed.
The Chinese Yuan has been falling fast in recent days. This has the potential to heighten US-China tension, given President Trump has previously branded China a currency manipulator.
Global equity markets were mixed on the day – Dow +0.4%, S&P500 0.6%, FTSE -0.1%, DAX -1.4%, CAC -1.0%, Nikkei -1.0%, Shanghai -1.0%.
Gold prices dropped 0.8% to USD$1,248 an ounce. Oil prices (WTI) jumped over 3% higher to USD$72.76 per barrel.
Have a nice weekend.
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »