By Dan Bell
The NZDUSD opens at lower at 0.6516 this morning.
The NZDUSD touched 2 ½ year low of 0.6501 overnight as the USD continues to strengthen across the board.
Expectations for further US Fed interest rate increases become more cemented, benefiting the USD, with the next hike forecast for 27th September (NZ time).
The USD also gained on some safe-haven buying on growing trade tensions between China and the US. However, there were some encouraging signs the Trump administration was moving towards resolving it trade issues with Canada and Europe.
The GBP gave up some of its recent gains as a rise in optimism over the prospects for a Brexit trade deal with the EU faltered. However, not before the NZDGBP dipped below 0.5000, a level last seen in June 2016 in the post-Brexit vote result mayhem.
Oil prices surged over 3% higher as US sanctions squeezed Iranian oil exports and Hurricane Florence, rapidly approaching the US East Coast, threats their gasoline supplies and pipelines.
There is no data on the NZ economic calendar today.
Global equity markets were mixed on the day – Dow +0.5%, S&P 500 +0.2%, FTSE -0.1%, DAX -0.1%, CAC +0.3%, Nikkei +1.3%, Shanghai -0.2%.
Gold prices are rose 0.1% to USD$1,197 an ounce, while WTI Crude Oil prices surged 3.1% to US$69.53 per 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 »