By Dan Bell
The NZD/USD opens around 0.8280/0.83 after risk markets run out of momentum on Friday night.
Global stocks finished lower with the S&P 500 down 0.45%. Commodities were mixed with the CRB Index up 0.64%.
Concerns about Spain appear to have led investors push the sell button again. While it may seem strange, the market was actually hoping that Spain would’ve asked for an official bailout by now- the fact that they haven’t is causing some concern as their government finances are a mess.
An official request would allow them to access the EU bailout funds and give the market more comfort they will be able to soldier on?
NZDAUD traded to 12 month highs over the 0.80 level on Friday night.
The NZD opens at current indicative mid rates against the major crosses: 0.7990 AUD, 0.6445 EUR, 0.5128 GBP, 64.65 JPY and 0.8145 CAD.
Not much to report from NZ today. Its Labour Day holiday in most Australian states. At 1pm today China Manufacturing PMI is released which will be a focus this afternoon.
Tomorrow the RBA announce monetary policy. Later in the week we also get the ECB and Bank of England. On Friday night/Sat morning we get US Employment Data which is always a big focus.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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