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The Opening Bell: Where currencies start on Friday, March 6, 2015

Currencies
The Opening Bell: Where currencies start on Friday, March 6, 2015

By Dan Bell

The NZDUSD opens lower at 0.7460 this morning.

The RBNZ yesterday released comments they were consulting on the classification of residential investment lending causing an immediate 50 pt sell off against the USD. This theme continued overnight with broader USD strength, the NZD being the main under performer of the majors.

Overnight:

The main event was the ECB meeting where they left rates unchanged and confirmed asset purchases would begin Monday. EUR/USD trading to 11 year lows briefly touching below 1.100.

US Jobless Claims of 320k came in above the 295k consensus which analysts are blaming on poor weather.
 
Bank of England left rates on hold at 0.5%.

Global equity markets mainly up on the day – Dow +0.2%, Nikkei +0.3%, Hang Seng -1.1% FTSE+0.6%, DAX +1.0%.

Gold prices finished -0.4 % at USD$1,196. Oil finished at -0.6%.

The current indicative mid-rates are:

NZDUSD           0.7460
NZDEUR           0.6770
NZDGBP           0.4905
NZDJPY              89.80
NZDAUD           0.9620
NZDCAD           0.9340

Over night the main event risk is the US NON FARM EMPLOYMENT CHANGE

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

Daily exchange rates

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Daily benchmark rate
Source: RBNZ
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Source: RBNZ
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Source: RBNZ
End of day UTC
Source: CoinDesk

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4 Comments

Crikey it's quiet in here !!!

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The RBNZ has a bottom draw full of dumb and dumber ideas plus pure lies that it trots out each time the currency and market adjusts (usually upwards of late) to reflect reality, the game now, of course, is to ankletap the NZD to suit the likes of fontera. It is a little trick they learned a few years ago from the US Fed and the BOE.  

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So whats wrong with keeping the NZD lower to assist our exporters and hence the NZ jobs involved?

Isnt it conventional "wisdom" that having more exports in $ terms than imports is a good thing for our country's wealth?  Doesnt a lower NZD achieve  that?

"Reflect reality" is an interesting Q, not sure it does. 

As a tool the LVR seems to be working quite well btw. 

A lot of the other things that could be done is down to the government.

 

 

 

 

 

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what lies?

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