The NZD opens flat against the USD at 0.6466
A reasonably quiet day for the NZD, moving in about a 1% range before ending flat. It is actually holding up relatively well given the risk off tone, and the fact that global stocks are off about 2% across the board.
The slight misses is UK data overnight were overshadowed by the latest positive Brexit news. The EU’s Chief Negotiator Barnier came out saying that 80-85% of the Brexit Treaty is agreed. He also said a deal is within reach by Wednesday, October 17. The more and more that the 17th gets priced in as a possible deal date, the more volatile it will be should the market be disappointed with a push out to November. Those with Pound exposure will need to start weighing up whether two and a half year highs are good enough, or if they are prepared to ride out the expected volatility of the coming weeks/months.
Another light data day, although data is not really driving things lately, taking a back seat to headlines and positioning. US CPI overnight is the only real highlight.
Global Equity markets are pretty heavily down: Dow -2.03%, S&P 500 -2.06%, FTSE -1.27%, DAX -2.21%, CAC -2.11%, Nikkei 0.16%, Shanghai +0.18%.
Gold prices are up 0.3% overnight trading at $1,195 an ounce. WTI Crude Oil prices have dropped back, down 2.4% trading at $73.26 a barrel.