The NZD opens higher this morning on mixed US data. Optimism also returned to markets with hopes that an agreement between the US and Mexico will be reached to avoid US tariffs on Mexican goods.
RBNZ Sees Rates On Hold In Foreseeable Future
The NZD rallied yesterday afternoon following a speech from RBNZ assistant governor Christian Hawkesby commenting that the central bank’s “view is that New Zealand’s interest rates will remain broadly around current levels for the foreseeable future”. The speech was delivered last week in Tokyo and only released by the RBNZ yesterday.
Australian Growth Slows
Australian Q1 GDP data released yesterday showed their economy grew 0.4%, missing expectations of 0.5%. The annual pace of growth hit its lowest level in a decade at 1.8% yoy matching forecasts as weak wage growth and falling home prices continue to weigh on consumer spending. The slowdown will support further easing in monetary policy from the RBA.
US ADP Report Misses Expectations
The US ADP National Employment report came in much lower than forecasted with only 27k new jobs added in the private sector in May, missing expectations of 180k and significantly down from the 263k jobs recorded in the month prior. The USD managed to pare back some of its losses when the US ISM non-manufacturing index rose to 56.9 from the forecasted 55.5. Focus will now be on the all-important Non-Farm Payrolls released Friday night with 185K new jobs expected.
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