By Dan Bell
The NZDUSD opens at 0.6771 (mid-rate) this morning.
The NZD has traded tight ranges against all its rivals as investors look to this morning’s inflation report for direction.
The current market expectations are for NZ’s consumer price index to have increased by 0.5% in the second quarter for an annualised rate of 1.6%.
Yesterday afternoons China data disappointed with the National Bureau of Statistics report showing GDP expanded by 6.7% y/y in the three months to June. The result although in line with expectations was the slowest expansion since Q3 2016.
Overnight the US retail sales for the month of June increased in line with economist estimates, with the Commerce Department reporting retail sales increased by 0.5% following on from a upwardly revised 1.3% spike in May. May’s retail sales had previously been reported as a 0.8% increase. The core retail sales, which exclude auto sales rose by 0.4% again in line with expectations, following a 1.4% surge in May.
Tonight investors will turn their attention to Fed Chair Jerome Powell’s congressional testimony on monetary policy and what effects if any, the US china trade war may have on future rate hike decisions.
Global equity have had a mixed start to the week, – Dow +0.10%, S&P 500 -0.10%, FTSE -0.66%, DAX -0.16%, CAC +0.09%, Nikkei Closed, Shanghai -0.83%.
Gold prices are little changed at $1,240 an ounce WTI Crude Oil prices have plummeted, down 4.1% trading at $67.09 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 »