The NZDUSD opens at 0.6717 (mid-rate) this morning.
The NZD and AUD have extended their recent gains on the back of yesterday’s stronger than expected monthly China data
releases.
Yesterday’s data showed China’s Gross domestic product (GDP) growth slowed to 6.2% in Q2 following on from 6.4% in Q1,
the result is still within China’s target growth rate for the year of between 6.0% and 6.5% and was in line with
expectations.
The monthly releases and in particular China’s retail sales and industrial production have allayed some of the fears
about slowing global growth with both releases printing well ahead of forecasts.
Annual growth in industrial production which had been expected to increase to 5.2% in June following on from May’s 5.0%
rate of growth, grew by 6.3% y/y. Retail sales were up by 9.8% y/y following on from May’s 8.6% increase and again were
far better than the forecast 8.5% result.
This morning’s quarterly inflation data which is expected to show Q2 CPI increasing by 0.6% on the quarter following a
disappointing 0.1% result in Q1 will be the main driver for the NZD. The expected increase is largely due to higher
petrol prices and is expected to push annualised number up to 1.7% from Q1’s 1.5% reading.
Global equity markets are edging higher, - Dow +0.05%, S 500 +0.03%, FTSE +0.34%, DAX +0.52%, CAC +0.10%, Nikkei +0.20%, Shanghai +0.40%.
Gold prices are little changed, trading at $1,410 an ounce. WTI Crude Oil prices have slipped lower, down 1.1%, trading at $59.61 a barrel.