By Dan Bell
The NZD/USD opens at 0.7990 this morning after trading to a low of 0.7920 overnight and continues to find resistance at the 0.80 level.
Global stocks were mostly higher as the corporate earnings season continues to show better than expected profits from some of the world’s largest companies. The S&P 500 is currently up 0.64%.
Commodities have had a mixed night with oil prices up 0.73%, gold down 0.82%. Agricultural commodity prices continue to surge with corn and wheat futures up 1.8% overnight. A severe drought in the US Mid West has sent corn prices up 50% over the last month. This is putting upward pressure on global food prices as corn is used in many different manufactured food products.
EU debt woes have not gone away. Spain continues to be a major concern - house prices down another 8% on an annualised basis. Their bond yields were up again overnight with 10 Year yield at 6.96%.
The NZD has had a mixed night against the major cross rates and opens at 0.7710 AUD, 0.65 EUR, 0.5115 GBP and 63.00 JPY.
Nothing to report from NZ today. From Australia we get Business Confidence at 1:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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