The Opening Bell: Where currencies start for Thursday, July 12, 2012

The Opening Bell: Where currencies start for Thursday, July 12, 2012

By Dan Bell

The NZD/USD opens around 0.7960 after trading to a high of 0.7998 and a low of 0.7927 over the last 24 hours.

The key announcement overnight was the FOMC minutes which didn’t show any consensus about further ‘money printing’ from the US Federal Reserve voting members which disappointed QE3 bugs and put stocks and risk currencies under pressure.

Before the announcement the NZD/USD was trading at highs around 0.7998 and dropped over 50 points to 0.7940.

US stocks had a choppy night but ended mostly flat for the day. Commodities were mostly up with oil prices gaining 2.7%.

Meanwhile the EUR continues to struggle with NZD/EUR making a new all time high over 0.6520.

The NZD is weaker against the AUD at 0.7780 this morning, up against GBP at 0.5145 and JPY at 63.60.

NZ Manufacturing (PMI) numbers today- not a market mover but worth a look. From Australia we get the notoriously volatile Labour Force Data at 1:30pm. The recent run of employment numbers from Australia has been quite strong lately - unemployment expected to come in at 5.2%.

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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here

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