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The Opening Bell: Where currencies start for Wednesday, February 27, 2013

Posted in Currencies

By Dan Bell

The NZD has been hammered overnight dropping to its lowest level since the first week of January.

The NZD/USD opens around 0.8250 after trading to a low of 0.8221 and has been one the weakest currencies overnight.

Political gridlock in Italy has sent markets into a fresh bout of risk aversion. Yields on Italian and Spanish bonds spiked overnight while most European stock markets were down 2%.

US markets turned positive after Fed Chairman Ben Bernanke said the US central bank would continue its bond-buying program, arguing that the benefits still outweigh the potential risks.

US stocks are up 0.64% as I write after a choppy session.

The NZD opens at 0.8064 AUD, 0.6327 EUR, 0.5459 GBP, 75.94 JPY, 0.8477 CAD.

On the local front we get NZ Trade Balance and Visitor Arrivals at 10:45am. From Australia we get Construction Work at 1:30pm.

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

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1 Comments

Bernanke says there may be

Bernanke says there may be ‘frothiness’ in some asset classes.