The Opening Bell: Where currencies start for Wednesday, August 15, 2012

By Dan Bell

The NZD/USD opens at 0.8045 – a 3-week low – after stronger than forecast US retail sales figures caused the market to pared expectations of further monetary easing by the US Federal Reserve.

US retail sales rose for the first time in 4 months, signalling that consumers could drive faster economic growth in Q3, causing the USD$ to strengthen and the NZD to fall.

Spain’s government is considering requesting a bailout by getting the ECB to buy Spanish bonds.  No decision has been made, but it only seems like a matter of time before they have no choice but to ask.

There was better than expected German and French economic output data.

Global equity markets were relatively quiet overnight with the main US indices near flat on the day, although the European & UK bourse were stronger by circa 0.5%.

The 19-commodity CRB Commodity Index was rose 0.4%. Oil prices rose a little, while Gold dropped 0.4% to USD$1599 per ounce. Copper gained modestly to USD$7416 a tonne, and were other base metals were mixed.

The NZD opens at 0.8045 USD, 0.7675 AUD, 0.6535 EUR, 0.5135 GBP, & 63.35 JPY.

There is no NZ data on today’s calendar. Westpac Consumer Sentiment & Wage Price Index will be released from Australia in the early afternoon. While from the US tonight brings inflation, industrial production, housing market index, amongst others.

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