The NZDUSD opens at lower at 0.6646 this morning.
The NZD hit the skids yesterday after yet another fall in business confidence, which plunged to 10-year low of -50.3%,
compared with -44.9% in July. The RBNZ will be concerned that continued weak business confidence will a real impact on
the economy that could nudge them towards easing monetary policy.
The AUD slipped lower on disappointing capital expenditure data.
The USD rose overnight after US consumer spending, which accounts for almost 70% of US economic activity, posted a solid
increase in July.
US personal consumption expenditure (PCE), the US Fed’s preferred inflation measure, continued to trend higher - this
also benefited the USD.
Emerging market currencies were hit hard overnight. The Argentinian peso nose-dived nearly 20% against the USD after its
central bank hike its benchmark interest rates to an eye-watering 60%.The South African rand tumbled and Turkish lira
continued to be pressured by market nervousness and contagion fears.
The Canadian dollar (CAD) weakened after Q2 GDP missed forecasts, supporting the markets view that the Bank of Canada
will refrain from increasing interest rates next week.
There is no data on the NZ economic calendar today. Monday is US Labor Day holiday.
Global equity markets were lower - Dow -0.5%, S 500 -0.4%, FTSE -0.6%, DAX -0.5%, CAC -0.4%, Nikkei +0.1%, Shanghai -1.1%.
Gold prices are fell 0.4% to USD$1,200.50 an ounce, while WTI Crude Oil prices gained 1.1% to US$70.08 per barrel.
Have a nice weekend.
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