The NZDUSD opens at 0.7790 this morning.
The NZDUSD hit a fresh 3-week low a touch under 0.7750 yesterday on market nervousness over Syria, and renewed turmoil in emerging markets.
Western allies are readying for a possible air strike against the forces of Syrian President Bashar al-Assad. However, timing of any action is unclear – the United Nations has stated its inspectors needed four days to conclude their investigation into whether the Assad regime used chemical weapons.
These factors are creating uncertainty and heightened risk aversion which is pressuring the NZD and benefiting the USD, JPY, Gold & Oil prices.
Speculation on when the US Fed will begin to trim their stimulus program continues in the background, which has been hurting emerging markets and their currencies.
Global equity markets were mixed on the day – Dow 0.5%, Nikkei +0.7%, Shanghai -0.5%, FTSE -0.2%, DAX -1.0
The Gold Price ended little changed at USD$1416 an ounce, however it did spike as high at USD$1433. Oil surged 1.7% higher, while base metal prices were weaker on the day.
The NZD opens at 0.7790 USD, 0.8720 AUD, 0.5840 EUR, 0.5015 GBP, & 76.15 JPY.
ANZ Business Confidence will be released at 1:00pm today.
Australian New Home Sales & Private Capital Expenditure figures hit the tapes early afternoon.
US Preliminary GDP & Weekly Unemployment Claims will be released tonight. However, the markets primary focus will remain on Syrian developments.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to 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.