The NZDUSD opens at 0.7069 (mid-rate) this morning
In the absence of any tier one economic data releases and with the US, Japan and Canada all enjoying a long weekend, currency markets have been relatively subdued.
The NZDUSD consolidated below 0.71 with the currency pair confined to a tight 30pip (0.7055-0.7085) trading range since Friday’s close. Election uncertainty will remain the main driver for the NZD this week.
The British Pound has been the best performing currency over the past 24 hours after speculation of Conservative party infighting and a possible challenge to Theresa May’s leadership was rebuffed by May and a number of prominent Conservative party members.
The EUR received a boost overnight, as protests in Spain against Catalonia’s bid for independence abated and German industrial output and investor confidence data releases came in ahead of expectations. Reversing a 0.1% fall in July industrial output grew 2.6% m/m in September, well ahead of the predicted 0.9% increase, while investor confidence in October strengthened to a 10-year high with the Sentix index unexpectedly rising to 29.7 up from 28.2 in September. Economists had expected the index to pull back to 28.0.
Global equity markets remain mixed - Dow -0.02%, S&P 500 -0.06%, FTSE -0.20%, DAX +0.16%, CAC +0.11%, Nikkei Closed, Shanghai +0.76%.
Gold prices have edged higher, up 0.5% trading at $1,282 an ounce. WTI Crude Oil prices are tracking higher up 0.8% overnight at $49.68 a barrel.