The NZD/USD has been slammed overnight and is down almost 3 cents from recent highs over 0.86.
The NZD/USD opens around 0.8380/0.8400 in a skittish and nervous market following a big fall in commodities and an explosion in Boston which is being investigated as a potential terrorist attack.
Gold and silver suffered their biggest single-day drop in 30 years down 9.9% and 12.5% respectively.
Global stock markets are down across the board with the S&P 500 down 2.3% - biggest one day fall this year.
At approx 7am NZT an explosion at the Boston marathon was reported - at this stage 2 people have been killed and numerous injured. The explosion has been confirmed as being the result of a number of small bombs.
The NZD opens at 0.6437 EUR, 0.5494 GBP, 81.13 JPY, 1.2262 NZD, 0.8606 CAD.
Not much to report on the domestic front. RBA minutes at 1:30pm. Risk aversion will be the main theme today and further concerns about terrorist attacks in the US.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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1 Comments
What we are seeing a commodity cycle correction. Citi Group has advised that this is the end of the current commodity cycle in which over the past 10 years $250 billion dollars has been made. I think this is correction that has been long overdue. This creates great buying for the investor over the next 10 years. If you look at the markets are having a good sell off even the agricultural commodities are taking a hit. The industrial commodity correction is going to have an impact on the Australian economy.
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