By Dan Bell
The NZD/USD opens around 0.7540/0.7580 this morning on very thin ‘Monday morning’ liquidity.
European equity markets were weaker on Friday night with the FTSE down 1.1% but US markets had a more stable night with the Dow Jones finishing up 0.22% but the S&P500 off 0.18%. Commodities were weaker across the board with the CRB Index down 0.73%.
The AUD/USD opens this morning just under parity while the EUR/USD is sitting just above 1.35.
The NZD continues to be one of the worst performing currencies against the major cross rates- liquidity is very thin so wide spreads this morning between bid/offer rates - NZD/AUD-0.7560/0.7590, NZD/EUR- 0.5580/0.5615, NZD/GBP-0.4770/0.4800, NZD/JPY- 57.90/58.25
From NZ we get Credit Card Spending data today, Inflation Expectations tomorrow, and Trade Balance on Thursday. Not much to report from Australia.
The US Super Committee need to announce US$ 1.2 trillion in government spending cuts by Wednesday! The US will be mindful of the debacle on the debt ceiling which led to the credit downgrade by S&P earlier this year. Also watch out for further news from Europe. Thanksgiving holiday in the US on Thursday so probably a quiet finish to the week.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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