Daily Morning Report 01/06/2015
The New Zealand dollar moved higher against its U.S. counterpart today, but remained within close distance of a four-and-a-half-year trough as demand for the greenback remained broadly supported by expectations for a U.S. rate hike in the coming months.
Elsewhere, the US Dollar remained supported even after data showed that the U.S. economy contracted in the first quarter, as recent indications of a rebound in growth continued to fuel expectations for higher interest rates. U.S. gross domestic product contracted at an annual rate of 0.7% in the first three months of the year, instead of the initial estimate of 0.2% growth the Commerce Department said. It was still better than economists’ forecast of a 1% contraction.
Also Earlier today, the Australian Bureau of Statistics said that building approvals dropped 4.4% in April, compared to expectations for a 2.0% decline. The change in building approvals for March was revised to an increase of 2.9% from a previously estimated 2.8% rise.
Later in the day, the Institute of Supply Management is to release data on manufacturing activity.