By Dan Bell
The NZD/USD opens around 0.82 this morning, after hitting a high of 0.8275 and a low of 0.8183 over the weekend.
US Employment numbers were better than expected in Feb. 227K new jobs were created (210k exp). Previous months were also revised up. This is the 3rd month in a row the US economy has produced 200K jobs - which means they have created approx 1.2m new jobs in the last 6 months. Unemployment rate remains unchanged at 8.3% due to an increase in participation rate.
The better than expended employment number initially saw ‘risk on’ across global markets - but an announcement from ISDA - the organisation that over sees the global derivatives market - that the Greek debt deal is technically a default, and $3bn in credit default swaps will be triggered, saw ‘risk off’.
We have not seen a huge response to this announcement at this stage. For the most part the market seems more comfortable with the situation in Europe and the fact that the Greek debt deal will see the release of the next tranche of bailout funds.
Global equities closed marginally higher on Friday night with the S&P 500 up 0.29%. Commodities also experienced gains with the CRB Index up 0.5%. Oil prices continue to push higher, up 0.7% to US$ 107.4 bbl.
The NZD is relatively unchanged against the major cross rates and opens at 0.7750 AUD, 0.6250 EUR, 0.5230 GBP and 67.60 JPY.
Not much to report on the local front this week.
Offshore the focus will be on the US FOMC monetary policy announcement on Wednesday 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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