The NZDUSD opens at 0.6801 (mid-rate) this morning.
Global growth concerns are weighing heavily on equity markets with US averages extending yesterday’s sharp sell-off as investors react to the latest batch of disappointing earnings reports.
As a result of the equity market sell-off along with concerns about rising global supplies crude oil prices continue to tumble with WTI Crude at one point overnight down 7% to $53.24 a barrel. WTI is now down close to 30% from last month’s four-year high of $76.90.
This morning’s Global Dairy Trade auction has seen prices continue their fall with the overall index down 3.5%. A total of 42,966MT of product were sold at this morning’s auction with the whole milk powder and the skimmed milk powder indexes falling 1.8% and 1.65 respectively.
Overnight the US Commerce Department reported housing starts increased by 1.5% to an annual rate of 1.228 mil in October after plunging by 5.5% to a downwardly revised rate of 1.210 mil in September. The result was marginally ahead of economists’ forecasts.
Global equity markets have fallen sharply, - Dow -1.53%, S&P 500 -1.10%, FTSE -0.76%, DAX -1.58, CAC -1.21%, Nikkei -1.09%, Shanghai -2.13%.
Gold prices are little changed trading at $1,222 an ounce. WTI Crude Oil prices have plunged lower down a further 5.7% trading at $53.24 a barrel.