By Dan Bell
The NZD/USD opens at 0.8150, in a relatively uneventful overnight trading.
The EUR/USD was higher for the 3rd day in a row, underpinned by expectations the European Central Bank (ECB) is prepared to take action soon to quell the EU’s debt crisis.
The NZD/USD, traded just above 0.8220 of several occasions, could not break any higher. It was dragged lower by the AUD/USD after it was subject to profit-taking having traded at 1.0600.
The Reserve Bank of Australia (RBA) maintained the cash rate at 3.50% and stated rates are appropriate and that growth was close to trend.
Italy moved further into recession, which is increasing the odds they may be in need of fiscal assistance from the EU bailout funds.
Eurogroup President Jean-Claude Juncker commented that a Greek exit would be manageable, but not desirable, and that Europe would have no political power with the euro.
The US S&P500 index closed 0.25% higher, and Dow Jones up 0.20% on the day, while the European & UK bourse also rose by similar percentages.
The 19-commodity CRB Commodity Index was rose 0.7%. Oil prices gained 2.5%, while Gold were essentially flat at USD$1611 per ounce. Copper rose to a 1-week high of USD$7612 a tonne, and other base metal prices were generally firmer.
The NZD opens at 0.8150 USD, 0.7725 AUD, 0.6570 EUR, 0.5215 GBP, & 64.10 JPY.
There is no domestic data on the schedule today, however NZ employment numbers will be released tomorrow.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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