By Dan Bell
The NZD/USD opens around 0.824 after recovering from yesterday’s losses under 0.82 despite another negative night for most risk assets.
European stocks continued to slide overnight with most markets down 2%. US equities also struggled with the S&P 500 down 0.57%.
Commodities are mostly weaker with the CRB Index off 1%. Led by oil prices down 1.2%.
Protests in Spain and union strikes in Greece underscore ongoing tensions across Europe.
The NZD has been one of the best performing currencies overnight despite risk aversion keeping a lid on most other major currencies.
Against the major cross rates we open at current indicative mid rates: 0.7950 AUD, 0.6403 EUR, 0.5097 GBP, 64.05 JPY and 8117 CAD.
From NZ today we get the NBNZ (ANZ?) Business Confidence survey at 1pm-won’t be a market mover but interesting none the less.
With month and quarter end fast approaching market swings can be erratic and unpredictable as global investors ‘square up’ positions and adjust foreign exchange hedging cover against changes in portfolio values.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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