By Dan Bell
The fallout has continued overnight, the NZD has now dropped 6% against the US Dollar in the last 24 hours. We open this morning around 0.7820, having been down to 0.7750.
A combination of factors has seen the switch flicked firmly to ‘risk off’: A continuation of selling after the Fed’s grim global growth outlook yesterday, poor data out of China and Germany fuelling those fears, and Robert Zoellick, the World Bank Chief stating the chances of avoiding a ‘double dip’ are “eroding daily”.
Dow Jones currently -3.66% (beware a weekly close beneath the key 10,600 level), S&P -3.20%, FTSE -4.67%, CRB Index -4.41%.
The NZD is lower against the major cross rates to open around current indicative levels- 0.5800 EUR, 0.5090 GBP, 59.60 JPY, 0.8000 AUD.
A volatile close the week is a given, a good opportunity to place orders around the new key technical levels.
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.