By Dan Bell
The NZD/USD opens at 0.75 after trading to a low of 0.7453 overnight.
Risk aversion continues to be the key driver of financial market flows with the US Dollar continuing to benefit from a flight to safety. As a result the yield on US 10 Year government bonds fell to 1.72%!
European leaders gathered again amid Europe's debt crisis, with talk of Greek-exit contingency plans being discussed. EU's Junker and German leader Merkel downplayed expectation for any big decisions from the informal EU summit while Finland's PM joined Germany in opposing joint Euro Zone bonds.
The EUR/USD dropped to a low of 1.2545 - the lowest level in almost 2 years while the AUD/USD traded to a low of 0.9686.
European stocks were down 2.5% while US equities managed to stage a comeback in the last few hours of trading with the S&P 500 closing up 0.17% after better than expected US New House Sales data.
Commodities have been hit hard again with the CRB Index down 1.77% led by oil prices down 1.61%.
The NZD is slightly stronger against the major cross rates this morning and opens at 0.7695 AUD, 0.5965 EUR, 0.4785 GBP and 59.66 JPY.
Today we get NZ Trade Balance numbers at 10:45am and the Budget this afternoon. Offshore we get the China Manufacturing PMI numbers (HSBC) at 2:30pm
----------------------------------------------------------------
To subscribe to our daily Currency Rate Sheet email, enter your email address here.
----------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
No chart with that title exists.
1 Comments
Currencies become unpredictable and increasingly worthless.
What can NZ do to avoid massive fluctuations in the NZdollar and the loss of value in inflationary times ? http://www.youtube.com/watch?v=qeQtpRGSI_8&feature=relmfu
Not chunk, but now we need valuable money for the average Kiwi like you and me.
Here the solution: http://www.youtube.com/watch?v=GXC44l942bE
The government should legislate for a GOLD DOLLAR = another legal, but valuable currency to the NZdollar.
New Zealand - protect the value of money !!!!!!!!!!!!!
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.