By Dan Bell
The NZD/USD opens at 0.8115 after a relatively subdued night having traded in a 0.8096 to 0.8150 range.
The EUR/USD fell under profit-taking, but losses were limited by continuing hopes the European Central Bank (ECB) will take action to add stimulus the EU economy, however investor’s are getting nervous that this won’t happen anytime soon.
New Zealand employment data disappointed yesterday, which caused a small knee-jerk selling. Australian employment figures surprised on the upside resulting in the AUD/USD moving higher and NZD/AUD lower.
US weekly jobless claims figures showed improvement, and the US trade deficit narrowed.
ECB’s Noyer has ruled out the ECB purchasing primary market debt (ie straight off the respective government) but said intervention in the secondary markets (ie off investors) was “perfectly possible.”
Greece’s jobless rate has hit 23.1%, with over 50% of 15-24 year olds, with more job cuts to come.
Global equity markets were relatively quiet overnight. US S&P500 index rose 0.05%, and Dow Jones fell 0.10%, while the European & UK bourse closed little moved.
The 19-commodity CRB Commodity Index was rose 0.2%. Oil prices gained 1.0%, while Gold edged up to USD$1614 per ounce. Copper was little changed at USD$7553 a tonne, as were other base metals
The NZD opens at 0.8115 USD, 0.7675 AUD, 0.6590 EUR, 0.5190 GBP, & 63.75 JPY.
There is no domestic data on the schedule today. The Reserve Bank of Australia releases its Monetary Policy Statement at 1.30pm.
Aside: Dow Jones newswire has placed New Zealand 8th in GDP per medals table, and highest ranked OECD-member.
It said NZ’s medal’s ‘cost’ USD$12.7 billion each, however this looks an absolute bargain compared with bottom ranked India’s USD$1.2 trillion – not sure what this says about economic efficiency (or lack there of).
Have a great weekend and enjoy the last of the Olympics as it is a long time between drinks.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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