By Dan Bell
The NZD/USD rallied through Friday evening to finish up just under 0.79. We open this morning at 0.7900/0.7920 as the market absorbs the ‘positive’ Greek election result.
Official vote projections suggest Greece's conservative New Democracy party have a narrow lead and may be able to form a pro-bailout coalition with the Socialist Pasok party- a good result for risk sentiment.
Global stock markets were mostly higher on Friday night with the S&P 500 up 1.03%.
Despite a continuation of weaker news from the United States market participants remained more upbeat – on prospects of positive Greek election result and increased probability of additional Federal Reserve policy stimulus.
The NZD is generally higher against most major currencies and opens at current interbank mid rates :0.7815 AUD, 0.6227 EUR, 0.5035 GBP, 62.34 JPY.
The USD is weaker across the board with the AUD/USD up to 1.01 this morning (recent lows have been under 0.96!) and the EUR/USD at 1.27!
On the local front we get Consumer Sentiment at 10am. The key driver will continue to be the markets reaction to the Greek election result. At this stage no coalition has been announced and it may be days before an official result so expect the market to remain choppy.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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