The NZDUSD opens at 0.6704 (mid-rate) this morning.
The AUD is once again the best performing of the G10 currencies with yesterday’s record trade surplus and higher building approvals for the month of May supporting the dollar strength.
Broad USD weakness brought about by underwhelming US economic data has pushed the NZD back above US 67 cents.
The USD finds itself on the back foot after this morning’s economic data releases disappointed. The initial sell-off was in reaction to the ADP private sector employment report which showed jobs increased by 102k in June below economists’ forecasts of a 140k jobs increase. Further downward pressure came after the ISM reported its non-manufacturing index fell to its lowest level since July 2017 and now sits at 55.1 following on from a 56.9 reading in May. The index had been expected to dip to 55.9.
In a separate report the Commerce Department said the trade deficit widened to $55.5B in May as the value of imports surged up by 3.3% compared with a 2.0% increase in exports.
The British pound continues to weaken as expectations that the BOE will be forced to cut rates increase. With the UK’s PMI data releases showing growth in Britain's services sector has stalled and Bank of England Governor Mark Carney warning that trade tensions and a potential no-deal Brexit were growing risks to the UK economy investors are now positioning there books for a rate cut later this year.
Global equity markets are mixed, - Dow +0.67%, S&P 500 +0.76%, FTSE +0.66%, DAX +0.71%, CAC +0.75%, Nikkei -0.53%, Shanghai -0.94%.
Gold prices continue to edge higher, up 0.8% trading at $1,418 an ounce. WTI Crude Oil prices are little changed Trading at $57.02 a barrel.
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