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The Opening Bell: Where currencies start from on Friday, July 15, 2011

Currencies
The Opening Bell: Where currencies start from on Friday, July 15, 2011

By Dan Bell

 After yesterday’s 3-pronged boost for the NZDUSD (QE3, Moody’s, and NZ GDP), we saw the NZDUSD race to 0.8500, yet another post-float high.

Markets gave back gains however after Fed Chairman Ben Bernanke said they were “not prepared at this point to take further action” on stimulating the economy – in other words – don’t be so sure about QE3.

The Dow Jones is sitting just below 12,450, off -0.44% on the day, commodities are down -1.27%, yet Gold saw a new high of 1,594 USD.

The EUR/USD continued it’s extension off 1.38 to 1.4280 yesterday. We start today around 1.4150 as the USD regained ground across the board, seeing the NZDUSD in the low 8400’s and AUDUSD at 1.0720.

The NZD is higher against most of the major cross rates - indicative interbank mid rates as follows: 0.5950 EUR, 0.7850 AUD, 66.60 JPY and 0.5215 GBP.

No domestic data today – but the weekend sees more discussions on the Eurozone debt crisis, European Bank Stress Tests, and the US debt ceiling – plenty to keep markets cautious.

 

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

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