By Dan Bell
The NZD/USD opens higher at 0.8205 this morning, having ranged 0.8183 to 0.8233 overnight.
US markets shut again today due to superstorm Sandy – damage bill estimated at USD$20 billion so far.
Despite Sandy, risk sentiment rose after data showed the Spanish economy contracted at a slightly lower rate than forecast, and demand improved at an Italian debt auction. This boosted the NZD/USD.
The Bank of Japan announced increased monetary stimulus of 11 trillion yen – less than some had expected.
RBA’s Lowe expressed surprise the AUD has not come down, but it was not fundamentally overvalued.
US equity markets are shut due to Hurricane Sandy. UK & European equity markets gained between 1.0 to 1.5% on the day.
Gold prices were little changed at USD$1709 an ounce, Oil prices fell 0.5% while Copper bounced from near 2-month lows to USD$7,720 a tonne. Other commodities prices were mixed.
The NZD opens at 0.8205 USD, 0.7915 AUD, 0.6330 EUR, 0.5105 GBP, & 65.30 JPY.
NZ Building Consents will be released at 10:45am today, while EU unemployment, German Retail Sales, & French Consumer Spending will be watched with interest tonight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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