The NZDUSD opens at 0.7162 (mid-rate) this morning

The NZDUSD opens at 0.7162 (mid-rate) this morning.

The latest Global Dairy Trade (GDT) auction delivered a 3.2% fall for the index compared with a 1.3% increase at the previous auction. The fall had been widely expected with dairy futures falling over the past week, following the news that Fonterra was increasing volumes offered for sale at the auction by circa 5%. Whole milk powder (NZ’s key commodity export) fell 3.7%.

Overnight both the flash Euro-zone manufacturing purchasing managers' Index and flash Eurozone Services Purchasing Managers' Index printed ahead of economist’s estimates with the manufacturing PMI climbing to 55.5 (exp 55) while the services PMI increased to 55.6 from 53.7 in January. Economists had expected an unchanged reading.

Markets are likely to continue to consolidate ahead of tomorrowmorning’s FOMC meeting minutes data release. Following Federal Reserve Chair Janet Yellen’s comments last week that it would be unwise to wait too long before hiking rates, investors will search for clues in the minutes as to whether or not Fed will pull the trigger at their March meeting. Currently the forward market is pricing in a 36% chance of a 25 basis point hike.

Global equity markets eth the exception of the FTSE have pushed higher- Dow +0.45%, S&P +0.42%, FTSE -0.34%, DAX +1.18%, CAC +0.49%, Nikkei +0.68%, Shanghai +0.41%.

Gold prices are unchanged, trading at $1,237an ounce, WTI Crude Oil continues to edge higher currently up 1.4% trading at $54.42 a barrel.

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