By Dan Bell
The NZD/USD opens lower at 0.8130 this morning, although it is off the 0.8111 lows.
Market sentiment soured after EU finance ministers, the International Monetary Fund (IMF), and European Central Bank (ECB) failed to agree on a deal to release emergency aid to Greece.
This pressured NZD/USD from 0.8165 to a subsequent low of 0.8111, before it trimmed losses after the German Chancellor mentioned she saw chances of reaching a deal at the meeting of European finance ministers on Monday.
US consumer sentiment figures released overnight disappointed as uncertainty grew over the looming ‘fiscal cliff.’
Thanksgiving holiday weekend begins tonight in the US – we expect the markets will be relatively quiet for the remainder of the week.
The JPY weakened across the board on weak Japanese export data and expectation of further easing from the Bank of Japan. The NZD/JPY subsequently hit a new 7-month high of 67.12.
World equity markets rose on the day. The US indices gained circa 0.3%, while UK/European markets rose 0.1% to 0.4%.
Gold prices fell marginally to USD$1729, while Copper fell 0.5% to USD$7720. Other metals prices dropped, while Nickel managed to gain 0.4%.
The NZD opens at 0.8130 USD, 0.7850 AUD, 0.6340 EUR, 0.5100 GBP, & 67.05 JPY.
NZ Visitor Arrivals will be released at 10:45am today – it will not be a market mover.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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