By Dan Bell
Global markets have had a very quiet night. With Xmas day fast approaching many investors and traders will be taking a breather over the next few weeks - some may have decided to finish up early, fed up with the recent volatility and headline driven markets that have been extremely challenging this year.
As market begins to ‘thin out’, the lower liquidity can lead to more aggressive swings than usual - so while things are quiet at the moment they could easily kick off over the next few weeks.
The EUR/USD opens around 1.3014 this morning. The EUR looks to have found support for now and may see a bit of upside as the market squares up short EUR positions for Xmas. This could also support further upside gains for the NZD/USD.
NZ business confidence came in weaker than previous month but still suggests economy is in expansion mode.
The NZD is slightly weaker against the major European cross rates and opens around 0.5810 EUR and 0.4880 GBP. Against the AUD we open around 0.7630.
Nothing to report on the local front. From Australia we get RBA Monetary Policy Meeting minutes at 1:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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