By Dan Bell
The NZD/USD opens around 0.8380 down over half a cent from yesterday’s interbank high of 0.8440.
Global equities are weaker overnight as a slight ‘risk off’ tone creeps into markets overnight. The S&P 500 is down 0.16%.
The EUR/USD dropped from its highest levels since Feb last year on profit taking and comments from Jean-Claude Juncker, who leads the group of Euro-area finance ministers, said the EUR is “dangerously high.”
The German economy contracted 0.5% in Q4 as exports and investment slowed. Some analysts pointed to the higher EUR as a reason for slowing export demand.
The Japanese Yen is stronger against most major currencies after Japanese Economics Minister Akira Amari said excessive Yen weakness could hurt people by raising import prices. The Yen has been under significant pressure over the last few months - NZD/JPY has rallied over 10% over the last month and recently traded as high as 75.40.
US Retail Sales were stronger than expected rising 0.5% in December VS consensus of 0.2%.
The NZD opens at current indicative mid rates: 0.7943 AUD, 0.6305 EUR, 0.5223 GBP, 74.40 JPY, 0.8260 CAD.
Not much to report on the local front today. From Australia we get Westpac Consumer Sentiment at 12:30pm.
------------------------------------------------------------
To subscribe to our daily Currency Rate Sheet email, enter your email address here.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.