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The Opening Bell: Where currencies start for Wednesday, August 28, 2013

Currencies
The Opening Bell: Where currencies start for Wednesday, August 28, 2013

By Dan Bell

The NZDUSD opens at 0.7795 this morning.

Major focus of the market is on the impending strike by Western powers against Syria’s al-Assad regime. 

Risk aversion increased – equity markets and the NZDUSD fell (hitting 0.7767 low), and ‘safe haven’ assets such as Gold, USTreasuries and the JPY all rose in value. The NZDJPY touched a 2-month low of 75.40.

US home prices rose in June, but the pace of gains cooled – higher mortgage rates appear to be impacting. However, US Consumer Confidence still increased.

Other news – Mighty River Power is paying a dividend of 7.2 cents per share.

Global equity markets were lower on the day – Dow -1.1%, Nikkei -0.7%, Shanghai +0.2%, FTSE -0.8%, DAX -2.3%

The Gold Price circa 0.8% to USD$1415 an ounce. Oil jumped over 3.0% higher, and base metal prices were generally a little weaker on the day..

The NZD opens at 0.7795 USD, 0.8675 AUD, 0.5820 EUR, 0.5015 GBP, & 75.65 JPY.

There is nothing  scheduled on the domestic data calendar today.

Australian Construction Work Done hit the tapes at 1:30pm – not likely to have much market impact. US Pending Home Sales will be released tonight, but could be overshadowed by Syrian strike developments..

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

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