XE Morning Update
The NZDUSD opens at 0.6461 (mid-rate) this morning.
The NZD surged higher yesterday afternoon following an upbeat monetary policy statement from the RBNZ.
The Reserve Bank are confident economic growth will accelerate over the second half of 2020 and that the infrastructure investment from the government will help fuel that growth. The Reserve Bank has a neutral bias for the OCR in 2020 which now includes a pencilled in hike in 2021.
Sentiment continues to improve with the continued slowdown in the rate of growth in new coronavirus cases and as such global equity markets along with risk linked currencies have outperformed.
The EUR is the worst performing of the G20 currencies falling to its lowest level against the USD since May 2017 as investors position their books for the ECB to cut rates again this year in an effort to stimulate their slowing economic activity.
Global equity markets continue to rise, - Dow +0.69%, S&P 500 +0.53%, FTSE +0.47%, DAX +0.89%, CAC +0.83%, Nikkei +0.74%, Shanghai +0.87%
Gold prices are little changed trading at $1,568 an ounce. WTI Crude Oil prices have surged higher currently up 2.3% at $51.59 a barrel.