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The Opening Bell: Where currencies start for Friday, January 18, 2013

Posted in Currencies

By Dan Bell

The NZD/USD opens at 0.8415 this morning, after an overnight low of 0.8381.

The NZD/USD was sold after yesterday afternoon’s disappointing Australian labour force data caused the AUD/USD to sell off - this dragged the NZD along for the ride.

NZD/USD bounced back somewhat after a solid bond auction from debt-ladened Spain, combined with upbeat US housing and jobs data boosted risk sentiment.

Global equity markets, commodity prices, and the EUR/USD also moved higher in response.

The JPY plunged on expectation the Bank of Japan is about to aggressively monetary policy easing. This pushed the NZD/JPY to a 4 ½ year high of 75.63.

World equity markets were climbed between 0.4% to 0.8% on the day.

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Gold prices dropped sharply initially before climbing to USD$1690. Copper prices and other base metals all rallied.

The NZD opens at 0.8415 USD, 0.7975 AUD, 0.6290 EUR, 0.5260 GBP, & 75.55 JPY.

NZ quarterly CPI data hit the tapes at 10:45am today, followed by the 3:00pm release of Chinese GDP, Industrial Production, and Retail Sales. US Consumer Sentiment will be released tonight.

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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here

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