By Dan Bell
The NZD/USD opens at 0.8255 this morning, with an overnight low of 0.8249.
Commodity prices were hammered overnight, which has weighed on the NZD.
The 19-commodity CRB Commodity Index dropped 2.01%, with oil plunging USD$5 in a few minutes, and corn & wheat fell 3.6%, copper fell 1% (to USD$7600), Gold dropped 0.7% to USD$1759. However, Iron Ore (+4%) & Nickel (+2.6%) bucked the trend.
Fonterra’s auction is tonight – will be interesting to see how prices hold up.
The USD has weakened sharply since the US Fed said it would pump USD$40 billion into the economy each month until unemployment fell significantly. However, some are now saying the USD sell off is over done and are looking for a bounce back.
Global equity markets gave up some of their recent gains. The US S&P index dropped 0.3% while the European markets fell by similar amounts. The Shanghai Composite Index (SSEC) sunk 2.1%.
The NZD opens at 0.8255 USD, 0.7890 AUD, 0.6300 EUR, 0.5085 GBP, & 65.05 JPY.
No data on the domestic calendar today. Reserve Bank of Australia Monetary Policy Meeting Minutes are released at 1.30pm – these will be closely examined to determine the likelihood of a near term rate cut.
------------------------------------------------------------
To subscribe to our daily Currency Rate Sheet email, enter your email address here.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.