By Dan Bell
The NZD/USD opens at 0.8360 this morning, having trading to an overnight high of 0.8396.
The EUR/USD hit a 6-week low of 1.3157 after the European Central Bank reported that EU banks would repay less than half the amount previous expected. This signals some banks still feel the need to keep some of the ultra-cheap emergency loans.
Italian parliamentary elections are currently being held. The markets are wary the result could hinder the euro-zone’s 3rd biggest economy's recovery.
Moodys credit rating agency lowered the UK’s sovereign debt triple-A rating on expectations its economic recovery will continue to struggle. The NZD/GBP surged to a new all-time high of 0.5545.
The Reserve Bank of Australia Governor caused expectations of further rate cuts to be pared back as he mentioned there was already a good deal of stimulus in the economy. The NZD/AUD dropped sharply to a low of 0.8098 consequently.
World equity markets rallied strongly. The US indices climbed 0.8% to 1.0%, while the Euro-zone stock markets surged between 1.0% & 2.0%, while the UK index rose 0.7%.
Gold prices firmed to USD$1581. Oil rose a little, Copper prices fell to USD$7860, while other base metals prices were mixed on the day.
The NZD opens at 0.8360 USD, 0.8110 AUD, 0.6320 EUR, 0.5540 GBP, & 79.20 JPY.
There is no domestic data on the calendar today. The Chinese manufacturing data will be released at 2:45pm today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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