The Opening Bell: Where currencies start for Tuesday, May 21, 2013

By Dan Bell

The NZDUSD opens at 0.8170 this morning.

The USD weakened and ‘risk currencies’ such as the NZD & AUD rose overnight as the market pared back expectations that US Federal Reserve Chairman Ben Bernanke will sign a tapering of Fed’s massive USD$85 billion per month bond buying program later this week. The NZDUSD traded as high as 0.8176.

The USDJPY dropped from 4 ½ year highs after Japan’s Economy Minister Amari said that the JPY excessive strength has largely been corrected, and that further JPY weakness could damage the economy (not to mention relationships with their trading partners).

Global equity markets were mixed. Asian & European markets rose while those in the US fell slightly.

Gold prices surged circa 4% higher overnight - its first gain in 8 days - on reported short-covering.

However, the precious metal is still down over 15% for the year. Base metal prices climbed across the board, although concerns remain on their longer term outlook.

The NZD opens at 0.8170 USD, 0.8330 AUD, 0.6330 EUR, 0.5345 GBP, & 83.45 JPY.

NZ Visitor Arrivals hit the tapes at 10:45am, and Inflation Expectations and Credit Card Spending at 3:00pm.

Reserve Bank of Australia Monetary Policy Meeting Minutes will be released at 1:30pm, followed by some US Fed-speak tonight.


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 »

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a 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.