By Dan Bell
The NZDUSD opens at 0.6635 (mid-rate) this morning.
The US dollar lost some of its shine late on Friday after the University of Michigan’s consumer sentiment report disappointed.
Friday’s report showed an unexpected and notable deterioration in US consumer sentiment during the month of August. The preliminary report for August which had been expected to show the index inching up to 98.0 from July’s final reading of 97.9, in fact fell sharply recording a reading of 95.3. the final reading will be released at the end of the month.
The CAD strengthened further on Friday after Statistics Canada reported CPI increased by 0.5% in July following on from June’s 0.2% increase. The index had been forecast to inch up by 0.1%. One the year CPI increased to 3.0% in July after recording a 2.5% increase in June.
US equity markets which were heading lower in early trading on Friday turned positive after a report from the Wall Street Journal said Chinese officials had accepted an invitation from the US for a new round of trade talks to be held later this month. China later confirmed that a Chinese delegation led by Vice Commerce Minister Wang Shouwen will travel to the US this week for trade talks before the next round of tariffs targeting $16B worth of goods on both sides take effect on Thursday 23rd August.
This week’s local data highlight will be Wednesday’s quarterly retail sales report. Economists are forecasting a 0.4% increase in Q2 sales following Q1’s 0.15 increase.
Global equity markets closed out the week mixed, – Dow +0.43%, S&P 500 +0.33%, FTSE +0.03%, DAX -0.22%, CAC -0.08%, Nikkei +0.35%, Shanghai -1.34%.
Gold prices were up 0.9% on Friday but were still down circa 3.0% on the week closing on Friday at $1,184 an ounce. WTI Crude Oil prices edged lower on Friday, down 0.4% to close out the week at $65.21 a barrel.
Current indicative rates:
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »