By Dan Bell
The NZD/USD opens lower at 0.8205 this morning, having dipped to a low of 0.8180 early Saturday morning.
As widely expected, German lawmakers on Friday night approved the latest Greek bailout. German retail sales suffered a sharp drop, French consumer spending fell, and euro-zone unemployment hit 11%, which limited the impact of the positive news.
The market remains concerned the negotiations to avoid the US ‘fiscal cliff’ of tax hikes and spending cuts are floundering.
The JPY slumped, pushing the NZD/JPY towards 8-months high near 68.00 before retreating.
World equity markets closed Friday little changed.
Gold prices fell to USD$1714, while Copper rose to a 5-week high ofUSD$7,995 on growing confidence in the economic outlook in China. steady at USD$7780. Other metals prices were generally stronger.
The NZD opens at 0.8205 USD, 0.7860 AUD, 0.6320 EUR, 0.5120 GBP, & 67.55 JPY.
NZ Overseas Trade Index is today at 10:45am. The RBNZ holds it latest monetary policy meeting on Thursday – no change to the current rate of 2.50% is expected, despite recent soft data.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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