February 28, 2019 — 3 min read
The AUDUSD opens lower at 0.7095, the NZDUSD opens lower at 0.6810 this morning.
The NZD was under pressure yesterday afternoon after data suggested that Chinese manufacturing activity shrank for the 3rd straight month in February, while their service sector also slowed. Chinese manufacturing PMI (Purchasing Managers’ Index) shrank to the lowest level in 3 years and export orders fell to levels not seen since the global financial crisis – more signs that the Chinese economy is facing weak demand at home and abroad.
ANZ business confidence survey, released yesterday, indicated a net 30.9% of respondents expect the NZ economy to deteriorate over the year ahead. Fonterra cuts is annual earnings outlook but increased its 2018/2019 forecast for milk prices paid to farmers.
The NZDUSD fell overnight, as the USD rose after stronger-than-expected US GDP figures. Data showed the US economy expanded at a 2.6% annualised rate for Q4 2018, exceeding the 2.3% forecast, and grew at 2.9% during all of 2018.
Signs of a slowing US economy had shaken financial markets in recent months and led the US Fed to pause its monetary tightening. However, the solid GDP data may indicate fears of a significant US slowdown are overblown.
NZ monthly Building Consents figures hit the tapes at 10:45 am today – these are not anticipated to be a market-mover.
Global equity markets were mostly lower on the day - Dow -0.1%, S&P 500 -0.1%, FTSE -0.5%, DAX +0.3%, CAC +0.3%, Nikkei -0.8%, Shanghai -0.4%.
Gold prices are slipped 0.4% to USD$1,313 an ounce, while WTI Crude Oil prices fell 0.3% to US$57.10 per barrel.
Please contact us for more info about your international payments, or click here to register and save now.
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.
While we take reasonable care to keep the information on the website accurate and up to date, there may be occasions when this is not possible. Case Studies and articles are not intended to predict future moves in exchange rates or constitute advice.
XE makes no representations, warranties, or assurances as to the accuracy or completeness of any information derived from third party sources. If you are in any doubt as to the suitability of any foreign exchange product that you are intending to purchase from XE, we recommend that you seek independent financial advice first.
For more information about XE, please click here: Regulatory Information