By Dan Bell
The NZDUSD opens at 0.6785 (mid-rate) this morning.
Ongoing concerns surrounding global growth led to another equity sell-off on Friday with the Dow and S&P 500 closing at their lowest levels in seven and eight months respectively.
Disappointing industrial output and retail sales growth in China, along with weak manufacturing activity reports from Germany and France, and Brexit uncertainty were the catalysts for the latest sell-off in global equities.
On Friday data from IHS Markit showed the flash composite purchasing managers’ index which combines both manufacturing and services unexpectedly fell to a 49-mth low in November, with the index falling to 51.3 from October’s final reading of 52.7. economists had expected the index to inch up to 52.8.
The weekend’s US data releases were a mixed bag with retail sales and industrial production data releases printing ahead of expectations while manufacturing and services flash PMI reports were disappointing.
US retail sales for the month of November increased by 0.2% with October’s result upwardly revised to 1.15 from the previously reported 0.8% increase.
The week ahead will be dominated by Thursday’s data deluge with monetary policy statements from the US and the BOJ sandwiching New Zealand’s quarterly GDP report.
Global equity market closed out the week mixed, – Dow -2.24%, S&P 500 -2.33%, FTSE +1.10%, DAX -0.21%, CAC +0.68%, Nikkei +0.82%, Shanghai +0.03%.
Gold prices edged higher Friday, up 0.3% closing out the week at $1,247 an ounce. WTI Crude Oil prices ended Friday sharply higher, up 3.0%% and trading at $52.81 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 »