By Dan Bell
The NZD/USD opens around 0.8240 after trading to an interbank high of 0.8259 overnight.
It has been another very quiet night across global markets - US stocks are currently trading flat for the day while European markets were mildly positive as markets await further news about US Fiscal Cliff negotiations.
The EUR/USD rallied to a 7 month high against the US Dollar to 1.3107 overnight. The EUR has continued to benefit from so-called ‘good news’ around the Greek bailout.
The RBA cut rates by 25bps to 3.00% yesterday afternoon as expected - although the statement was less dovish than expected and no mention of an additional rate cut next year which has seen the AUD stronger against most major currencies overnight.
At 3% Australia still has the highest yield of any developed economy in the world - with NZ not far behind at 2.5%.
The NZD opens at current indicative mid rates: 0.7870 AUD, 0.6295 EUR, 0.6510 GBP, 67.50 JPY, 0.8185 CAD.
The Bank of Canada left their rates on hold at 1% overnight but maintained a tightening bias in their statement.
Not much to report from NZ today. Earlier this morning we had Fonterra Dairy Trade Auction results with average prices down 2%.
From Australia we get Q3 GDP at 1:30pm with expectations of +0.6% q/q. Tomorrow the focus will be on the Reserve Bank of NZ OCR at 9am.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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