By Dan Bell
The NZD/USD bounced back to a high of 0.8279, having dipped to a low of 0.8140 yesterday afternoon. It currently sits around 0.8255.
The NZD and other ‘risk assets’ such as Equities, Gold, and Base Metals were all trading at higher levels on news that Greek’s private sector bond swap deal was going well, thereby avoiding a disorderly default of its debt.
This should ensure Greece gets its EUR 130 billion bail out, and will keep the wolves from its doors for a little bit longer.
The 19-commodity CRB Commodity Index climbed 0.6% on the day. Gold prices climbed almost 1% to USD$1698, while Copper and Base Metals rose strongly in price. Similarly, Oil prices increased by circa 0.5%.
Equity markets are higher across the board overnight. The US S&P500 currently up 1.0%, while the Dow Jones Index is 0.6% higher.
The NZD opens at 0.8255 USD, 0.7745 AUD, 0.6220 EUR, 0.5215 GBP, & 67.40 JPY.
There is no data scheduled to be released on the local front today.
However, Australian Trade balance hits the tapes at 1.30pm, followed by Chinese inflation and retails sales data at 2.30pm, and the influential US non-farm payroll employment figures tonight.
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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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4 Comments
"This should ensure Greece gets its EUR 130 billion bail out, and will keep the wolves from its doors for a little bit longer."
But for how long is the question? Will this fiasco become another can kicking exercise ? Or is this just the way the pollys hang on, so things don't fail " on their watch" ?
BREAKING NEWS...
ISDA confirms Greece has defaulted, paving the way for $3bn CDS payouts that investors purchased to hedge against the risk of holding Greek sovereign debt. The vote was unanimous.
Here is the statement in full:
So, what does that mean Andrew?
It means you should be tucked up in bed :-) I think we have a few more months of this, but in the end its contagious. Its such a rubbish summer here that everyone around here is getting depressed.
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