The AUDUSD opened at 0.7172 (mid-rate), and the NZDUSD opened at 0.6721 (mid-rate) this morning.
The AUD strengthened yesterday afternoon on the back of better-than-expected Chinese data but encountered selling pressure as European traders entered the market.
The NZD was hammered yesterday morning with a disappointing first-quarter inflation result all but cementing a Reserve Bank of New Zealand interest rate cut possibly as early as next month. Although the NZD has bounced off the lows, in part due to the announcement that the proposed CGT has been shelved, the dollar remains vulnerable with the market now pricing in 38 bps of rate cuts by the end of the year.
Yesterday’s Chinese data, and in particular first quarter GDP which rose 8.7% also helped support the NZD against the majors but given Australia’s greater dependence on China as a trading partner, has seen the NZDAUD cross rate fall almost 4 cents from last month’s highs.
The only economic data of note during our trading day will be the monthly Australian employment report, due for release at 13:30.
Global Market Update
Overnight, the US Commerce Department reported the US trade deficit unexpectedly narrowed in the month of February amid a jump in the value of exports. The deficit, which narrowed as the value of exports increase by 1.1% in February now sits at $49.4 billion down from $51.1 billion in January. Economists had forecast the deficit to widen to $209.7 billion in February from $207.4 billion in January.
Global equity markets are mixed, - Dow -0.10%, S&P 500 -0.38%, FTSE +0.02%, DAX +0.43%, CAC +0.62%, Nikkei +0.25%, Shanghai +0.29%.
Gold prices are marginally lower, down 0.2% trading at $1,273 an ounce.
WTI Crude Oil prices have edged lower overnight currently down 0.6%%, trading at $63.87 a barrel.
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