By Dan Bell
The NZD/USD opens at 0.7930 after trading between 0.7925 and 0.7987 overnight.
Stocks are mostly weaker overnight as EU concerns remain. Germany said it could take months to decide on legal issues regarding the ESM bailout fund. On a more 'positive' note policy makers approved the 30bn EUR bailout for Spanish banks.
Commodities were weaker with the CRB Index down 1.38% led by Oil prices down 2.3%.
China’s Trade Balance data came in weaker than expected - exports expanded by 11.3% YoY in June, down from 15.3% YoY in May, but beating expectations, while imports fell significantly to 6.3% from 12.7% in May, lower than expectations.
The EUR has weakened against most major currencies overnight making new all time lows against the AUD and near two year lows against the USD- NZD/EUR opens close to all time highs at 0.6470.
The NZD is weaker against the other major cross rates and opens at 0.7790 AUD, 0.5110 GBP, 63.00 JPY.
Not much to report on the local front today. Tonight the focus will be on FOMC minutes from the US.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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