By Dan Bell
The NZD/USD opens at 0.8350 this morning after finding resistance again at recent highs around 0.8418.
The EUR has been one of strongest currencies overnight to open at 0.1.3450 USD - NZD/EUR opens around 0.6210.
The market has been more comfortable with the EUR after the second Greek bailout was approved and the European Central Bank is expected to pump more than 500 Billion EUR into the European banking system through their Long Term Refinancing Operation again tonight.
US economic data was mixed overnight - US Consumer Confidence came in at a 12 month high, but Core Durable Goods orders fell the most in 3 years down 4% in January.
While US economic data has been better in recent times - which has been supporting risk appetite across global markets and sent US equities to 3 year highs - some analysts remain concerned that most of the hard data remains weak - the ECRI (Economic Cycle Research Institute) are sticking to their recent call that the US will enter another recession this year.
The NZD opens at current indicative levels 0.777 AUD, 0.6210 EUR, 0.5250 GBP, and 67.2 JPY.
On the local front we get Building Approvals at 10:45am and NBNZ Business Confidence at 3pm. From Australia we get Retail Sales at 1:30pm.
Offshore the focus will be on the ECB’s next LTRO- will be interesting to see how much money the EU banks take up.
We also get Fed Chairman Ben Bernanke’s Testimony overnight/tomorrow morning.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
(Updated with Dow close)
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