By Dan Bell
The NZD/USD opens at 0.8095 this morning, having been as low as 0.8079 overnight.
Evidence that the EU’s debt crisis has stalled their economic growth, and most likely tipped it back into recession, combined with the on-going concern over the US ‘fiscal cliff’ tax rises and spending cuts has weighted on sentiment.
Gold prices, global equity markets, and the NZD/USD are all lower as a consequence.
In other news, China’s ruling Communist Party announced an older, conservative leadership line-up Thursday – they are unlikely to make any drastic policy changes, while tensions and violence has racheted up between Israel and Hamas/Palestinian Territories.
World equity markets were all lower on the day. The Dow fell 0.3%, while UK/European markets dropped between 0.4% & 0.8%.
Gold prices fell 0.8% to USD$1714, while Copper held steady around USD$7643. Other metals prices were mixed, although Nickel prices dropped 1.3%. Oil prices fell 1%.
The NZD opens at 0.8095 USD, 0.7835 AUD, 0.6335 EUR, 0.5105 GBP, & 65.75 JPY.
There no data releases scheduled from New Zealand or Australia today.
Tonight brings EU Current Account, along with Capacity Utilisation, Industrial Production, and some Fed-speak from the US.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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