By Dan Bell
The NZDUSD opens at 0.6732 (mid-rate) this morning.
Although there was very little immediate reaction to Friday morning’s Federal Reserve statement the US dollar gradually rose throughout the trading day pushing the NZDUSD rate back below 0.6750.
As widely expected the Fed kept interest rates unchanged while indicating that they remain on track to continue to hike rates gradually despite the recent slowdown in the pace of growth in business investment.
Friday nights US economic data came in ahead of expectations with the Labour Department reporting its producer price index for the month of October increased by 0.6% following on from a 0.2% rise in September. Economists had forecast the index to inch up by 0.2%.
The University of Michigan preliminary consumer sentiment report for November has the index marginally lower at 98.3 from Septembers final reading of 98.6. consensus was for the index to fall to 98.0.
Despite ongoing uncertainty over a Brexit deal the UK economy grew at its fastest pace in nearly two years in Q3. Gross domestic product increased by 0.6% following 0.4% expansion in Q2. The rate of growth in fastest since Q4 2016 and was in line with expectations.
With the US enjoying a long weekend Brexit headlines along with Italian budget negotiations are likely to dominate markets.
Global equity market closed out the week broadly lower, – Dow -0.77%, S&P 500 -0.92%, FTSE -0.49%, DAX +0.02%, CAC -0.48%, Nikkei -1.05%, Shanghai -1.39%.
Gold prices fell on Friday, down 1.3% closing out the week at $1,208 an ounce. WTI Crude Oil prices extended its current losing streak on Friday, down 1.4% closing out the week at $60.19 a fifth consecutive weekly fall, and its longest losing run in more than 30 years.
Current indicative rates:
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »