By Dan Bell
The NZDUSD opens at 0.6574 (mid-rate) this morning.
Another quiet night with the NZD more than holding its own against the majority of its rivals as risk appetite increased.
Concerns about the financial crisis in Turkey have eased with the Turkish lira recovering from a record low after Turkey’s central bank pledged to provide liquidity and cut reserve requirements for banks.
Overnight Germany’s economic growth exceeded forecasts for Q2 with the Destatis report showing the economy expanded by 0.5% sequentially, following the 0.4% increase in Q1. Economists had expected the growth rate to remain at 0.4%. On an annual basis GDP growth sits at 2.3%. Germany’s consumer price inflation came in as expected for the month of July. The report showed inflation moderated to a 3-month low of 2.0% following on from June’s 2.1% reading.
A mixed employment report out of the UK saw the GBP slip lower. Although the unemployment rate unexpectedly fell to 4.0% down from 4.2% in the 3-months to June investors focused on the lack of wage growth which slowed to a 9-month low of 2.4% for the same period.
Today the NZDAUD cross rate will dictated by Australia’s wage price index data release, due to hit the tapes at 13:30, while overnight tonight investors will look to the US retail sales report for guidance.
Global equity markets are mixed, – Dow +0.52%, S&P 500 +0.64%, FTSE -0.40%, DAX 0.00%, CAC -0.16%, Nikkei +2.28%, Shanghai -0.18%.
Gold prices are unchanged, trading at $1,193 an ounce WTI Crude Oil prices have are up 1.0% trading at $66.59 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 »