The Opening Bell: Where currencies start on Friday, September 16, 2011

The Opening Bell: Where currencies start on Friday, September 16, 2011

By Dan Bell

 

Another test of the low 0.8100s overnight, but a return in risk sentiment sees the NZD/USD back around 0.8230 this morning.

The RBNZ kept the OCR at 2.50% yesterday, with the accompanying statement indicating that the next rate hike will be dependant of the global outlook, no surprise there.  

Risk appetite benefitted from the ECBs resolution to work with the US Fed, BOJ, BOE and SNB to provide 3 month USD loans to commercial banks – a clear effort to free up money markets – European banks stocks up on the whole..

…Except UBS!! Their share price down 10% after the arrest of an alleged rouge trader who has reportedly lost an estimated $2 billion…

Markets higher on the whole, FTSE currently up 2.10%, Dow Jones 1.66%, S&P 1.60%. Commodities off again, the CRB index currently down -0.45%  


The NZD opens at 0.7970 against the AUD, NZDEUR at 0.5930, NZDGBP at 0.5210 and NZDJPY at 63.10.

-------------

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.