The Opening Bell: Where currencies start for Thursday, April 18, 2013

The Opening Bell: Where currencies start for Thursday, April 18, 2013

By Dan Bell

The NZD/USD opens around 0.8430/0.8450 after a turn in risk sentiment overnight.

Global stocks are weaker across the board with the S&P 500 down 1.4%. Commodities are also down, led by copper which fell 3.5% - to its lowest level since October 2011.

The EUR is weaker after a member of the European Central Bank, said the central bank could cut rates further if conditions in the euro zone worsen.

Third quarter corporate earnings results disappointed overnight with Bank of America down 4.72% after missing analyst expectations - Apple was one of the weakest stocks overnight down 5.5%.

The Bank of Canada held rates steady at 1% but maintained a mild tightening bias. Houses prices in Canada were up 2.6% from a year earlier - the smallest 12-month gain since November 2009.

Canada introduced tighter rules around mortgage lending last year to help cool their property market.

The NZD opens at current indicative mid rates:  0.8190 AUD, 0.6474 EUR, 0.5534 GBP, 82.68 JPY, 0.8656 CAD.

Not much to report on the local front today. From Australia we get Business Confidence data at 1:30pm. It appears the recent turn in risk sentiment may have more room to run which will weigh on the NZD in the short term.

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

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Who are these people that were disappointed with The Bank oo Americas earnings?
thats right they are a bunch of people who make money forecasting gloom and doom and yet also forecast boom.You can't win but they sure do.