The NZDUSD opens at 0.6340 (mid-rate) this morning

HiFX Morning Update

NZDUSD 0.6340 -2.0%
NZDEUR 0.5648 -2.5%
NZDGBP 0.4130 -1.7%
NZDJPY 76.82 -2.5%
NZDAUD 0.8998 -1.6%
NZDCAD 0.8354 -2.3%

The NZDUSD opens at 0.6340 (mid-rate) this morning.

The NZD has been the worst performing currency over the past 24hrs, with yesterdays disappointing business confidence report the catalyst for this latest sell-off. The report showed 29% ( falling from 15% in July) of businesses surveyed were pessimistic towards general economic outlook over the next 12mths. The main areas of concern are uncertainty in the global economy, falling commodity prices and a lack of inflation.

Today investors will be focusing on China’s manufacturing data and the RBA Cash rate announcement (where no change is widely expected) for direction. Overnight tonight the latest Fonterra auction will be closely monitored by traders.

Overnight Oil prices continued to rally after an OPEC report sparked speculation that the cartel was signalling a softer stance on output cuts and a fire disrupted some output in Canada (the largest foreign supplier to the U.S.).

Global equity markets have started the week mixed - Dow -0.72%, S&P 500 -0.87%, FTSE +0.89%, DAX -0.38%, CAC -0.47%, Nikkei -1.28%, Shanghai -0.82%.

Gold prices are holding steady at $1134 an ounce, WTI Crude Oil continues to rally gaining 7.3% overnight to trade at $48.55 a barrel.

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