The Opening Bell: Where currencies start for Monday, June 10, 2013

The Opening Bell: Where currencies start for Monday, June 10, 2013

By Dan Bell

The NZD/USD opens around 0.7820 this morning after another volatile session over the weekend.

The NZD/USD traded to an interbank high of 0.8015 on Friday night before better than expected US employment data saw the Kiwi lose over 120 points in less than 30 minutes.

US non-farm payrolls came in better than expected with +175k new jobs in May compared to expectations of +165k.

While previous months were revised down slightly, the better than expected headline number was enough to keep the market anticipating a tapering in Fed stimulus this year which has been a big driver in recent US Dollar strength. 

Economic data from China over the weekend was worse than expected with import & export growth particularly weak - which will be seen as another negative for NZD and AUD.

The NZD has been one of the weakest currencies over the last few days and has lost significant ground against most major currencies (except the AUD) as speculative positioning continues to be unwound.

The NZD opens at current indicative mid rates: 0.8317 AUD, 0.5935 EUR, 0.5046 GBP, 76.58 JPY, 0.7999 CAD.

On the domestic front we get Manufacturing Data (10:45am) and QV House Prices today. Australia is on holiday for Queens Birthday. 

The focus for NZ this week will be the RBNZ OCR and MPS on Thursday morning.

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

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