The Opening Bell: Where currencies start for Friday, June 14, 2013

The Opening Bell: Where currencies start for Friday, June 14, 2013

By Dan Bell

The NZDUSD opens sharply higher at 0.8095 this morning in a volatile market.

No great surprises from the Reserve Bank yesterday. Rates on hold for the remainder of 2013, NZD (on a trade weighed basis) is still too high, and Auckland & Christchurch property markets are a cause for concern.

Mr. Wheeler also mentioned the RBNZ could still intervene in the NZD if conditions are right.

Australian labour force numbers exceeded expectation – the AUDUSD (& NZDUSD) was rather whippy in the immediate aftermath.

Overnight, US retail sales and new jobless claims both came in better than anticipated.

US equity markets & oil prices surged higher, and the NZD followed suit. The NZDUSD broke above 0.8100 in thin, volatile trading this morning.

This high level of volatility are likely to continue, hence take your opportunities when you see them!

Continuing with the enhanced volatility theme, Japan’s Nikkei index plunged 6.3% lower and has now lost 21% from the highs. The USDJPY followed the Nikkei lower, but NZDJPY moved higher.

Global equity markets were mixed.  US indices gained over 1%, Europe & UK essentially flat, while the Asia bourses fell between 2.2% & 6.3%.

Gold prices dipped to USD$1385 an ounce overnight.

The NZD opens at 0.8095 USD, 0.8395 AUD, 0.6055 EUR, 0.5150GBP, & 77.25 JPY.

Business.NZ Manufacturing Index and Food Price Index are released this morning, followed by Japan’s monetary policy minutes, and US consumer sentiment tonight.

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

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