By Dan Bell
The NZD/USD opens at 0.8250 this morning, having ranged 0.8193 to 0.8253 overnight.
The NZD/USD hit 0.8193, the lowest level seen so far in 2013, after China announced tighter property sector measures in an attempt to bring surging house prices under control.
Any slowdown in China is widely seen as a negative for commodity-based economies such as NZ and Australia.
The EUR/USD approached a 2 ½ month low overnight on increasing expectations that the European Central Bank will cut rates sooner than previously expected - the inconclusive
Italian election together with disappointing euro-zone investor confidence figures are weighing on the EUR. The ECB has an interest rate setting meeting Thursday night, where it could signal future rate cuts.
The Shanghai Stock index plunged 3.6% yesterday in response to Beijing’s latest property market curbs (increased down payments and loan rates).
Gold price fell again as funds continue to flow out of physically backed gold exchange-traded products - it currently sits at USD$1570 an ounce. Copper prices rose slightly, while most other base metals dropped.
World equity markets were mixed. The US, UK & Euro-zone indices were little changed, the Shanghai index was hammered 3.65% lower.
The NZD opens at 0.8240 USD, 0.8100 AUD, 0.6335 EUR, 0.5460 GBP, & 76.90 JPY.
There is no data scheduled on the domestic calendar today. However, we have Retail Sales, Current Account, as well as the Reserve Bank of Australia interest rate meeting from Australia this afternoon.
------------------------------------------------------------
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.