By Dan Bell
The NZD/USD opens lower at 0.8190 this morning, having ranged 0.8180 to 0.8220 overnight.
Risk sentiment turned negative Monday night. Greece, which is near-bankrupt and will run out of cash mid-November unless it can agree on an austerity package to unlock the next tranche of aid.
However, international lenders have so far refused to make more concessions. This, along with the continuing will they/won’t they/when will they (Spain) request a bailout, has weighed on risk, the EUR/USD (near a 3-week low), and the NZD/USD.
Hurricane Sandy is continuing to bear down on the US eastern seaboard. The US stock and futures markets are closed as a consequence – this is the first weather-related shutdown in 27 years. Trading is relatively subdued as a result.
The Bank of Japan is widely expected to announce a further bond-buying programme this afternoon in an attempt to stimulate their struggling economy.
US equity markets are shut due to Hurricane Sandy. UK & European equity markets showed small losses on the day.
Gold prices eased marginally to USD$1709 an ounce, Oil prices fell 0.2% while Copper dropped 1.2% to a 7-week low. Other commodities prices were generally lower.
The NZD opens at 0.8190 USD, 0.7925 AUD, 0.6340 EUR, 0.5105 GBP, & 65.30 JPY.
There is no domestic data releases scheduled today. Hurricane Sandy, Bank of Japan policy announcement, and Reverse Bank of Australia Deputy Governor speech are likely to garner the markets attention today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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