By Dan Bell
The NZD/USD has tested new lows overnight, seeing 0.7677, after a 24 hours highlighted by poor domestic data and global risk aversion.
Yesterday’s downward revision of 2011 NZ GDP, and a drop in milk prices by 6.4% weighed on the Kiwi seeing a bout of offshore NZDAUD selling.
The Greek failure to form a government has spooked markets again, with the USD being the clear winner as investors seek safe-havens. Greece will now go back to the polls sometime between 10-17 June.
Market sentiment was further eroded by reports that 700 million EUR has been withdrawn from the Greek banking system of late, although the timings of the transactions are unclear.
The NZD opens lower on the crosses - 0.7740 AUD, 0.6037 EUR, 0.4805 GBP and 61.65 JPY.
A raft of European data this evening to look out for – EUR CPI and Trade Balance, UK employment figures and inflation report..
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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