By Dan Bell
The NZD/USD opens around 0.8230/0.8245 this morning after another quiet night for global markets.
A lack of news flows has seen markets range bound overnight although US stocks have managed to rally in the last hour or so to be up 0.4% as a write.
Markets are in a holding pattern awaiting further news regarding US Fiscal Cliff negotiations.
One of the most accurate RBA watchers in Australia - Terry McCrann - is calling for a rate cut next week which would take Australia’s cash rate down to 3%.
The market is divided about next week’s decision although we think the RBA will cut rates by 25 bps which will put some downward pressure on the AUD.
The NZD opens slightly stronger against the major cross rates at current indicative mid rates: 0.7862 AUD, 0.6367 EUR, 0.5144 GBP, 67.42 JPY and 0.8175 CAD.
NZ Business Confidence survey at 1pm today. From Australia we get Private CAPEX numbers at 1:30pm.
Tonight we get preliminary Q3 US GDP, expected to come in at an annualised rate of +2.8%.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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