The NZD/USD opens a slightly lower at 0.8365 this morning.
The EUR/USD plunged to a 4-month low overnight after a disappointing Italian bond auction and continuing concerns regarding the Cyprus bailout deal. The bleak outlook for the euro zone’s economy and risk of capital flight also weighed on the EUR.
Cyprus have announced capital controls to restrict the flow of cash from the island. They have imposed limits on cash withdrawals, credit card use abroad, and banned the use of cheques. The Cypriot bank are set to re-open tonight, having been close for nearly 2 weeks.
These factors helped drag the NZD/USD to an overnight low of 0.8345. The NZD/EUR made a fresh 7-month high of 0.6550, while the NZD/GBP & NZD/JPY are only a short distance below the recent highs.
Gold prices rebounded to USD$1606.
World equity markets are generally slightly lower across the board.
The NZD opens at 0.8365 USD, 0.8010 AUD, 0.6545 EUR, 0.5530 GBP, & 78.95 JPY.
NZ Building Consents will be released today at 10:45am.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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