The Opening Bell: Where currencies start for Tuesday, February 26, 2013

By Dan Bell

The NZD/USD opens around 0.8360 after trading to a high of 0.8417 and a low of 0.8342 overnight.

Risk sentiment turned negative after Italian election points to a hung Parliament.

Silvio Berlusconi’s centre right coalition appears to be leading the vote in the Senate which is seen as a negative by markets as his government would be less likely to continue reforms and pay down government debt.

Global stocks are down overnight with the S&P 500 off 0.7% as I write. Commodities are also weaker across the board.

The NZD opens at current indicative mid rates: 0.8147 AUD, 0.6386 EUR, 0.5513 GBP, 77.55 JPY, 0.8588 CAD.

From NZ today we get RBNZ Inflation Expectations at 3pm NZT. From Australia we get RBA Assist Gov Debelle speaking at an event.


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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here

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Silvio Berlusconi’s Government if they win the elections will take Italy out of the Euro as they stand to make a lot of money in doing so.