By Dan Bell
The NZD/USD threatened key support at 0.8000 yesterday after NZ Trade Balance figures accelerated the Monday morning move lower. It has since been dragged higher by a buoyant Dow Jones (+0.9%) and a higher EURUSD.
EURUSD has bounced from 1.4100 to 1.4300 after French President Nicolas Sarkozy said the government had an agreement with French banks on rolling over Greek debt holdings into new 30-year bonds.
The decision on the Greek package is due on Wednesday, June 29, and the approval of the law to implement the austerity measures is on the Parliament’s agenda on Thursday, June 30. Expect volatility around this.
Commodities had a poor night with the CRB index slipping 0.4%, copper fell 0.9%, West Texas Crude was lower and Gold remained under 1,500 USD.
The AUD/USD traded to it’s lowest level since mid-April last night, weighed by commodities and risk aversion. It went below 1.0400 before bouncing with the EURUSD.
Quiet domestic data week – UK Current Account and Inflation numbers this evening, and US consumer confidence figures tomorrow morning.
No chart with that title exists.
-------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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.