The NZDUSD opens at 0.8320 this morning.
The USD continues to hover near 8-month lows as the US government shutdown shows no sign of resolution. The October 17 deadline to increase the US debt limit is also fast approaching – both these factors are weighing on the USD and equity markets.
The NZDUSD dipped to 0.8275 low before bouncing from whence it came.
Fears are growing that protracted US shutdown and debt ceiling negotiations could hurt its fragile economic recovery and force the US Federal Reserve to delay tapering its massive bond buying program. This would be seen as negative for the USD.
Global equity markets were mostly lower on the day – Dow -0.5%, Nikkei -1.2%, Shanghai +0.6%, FTSE -0.3%, DAX -0.4%
The Gold Price rose 0.8% to USD$1322 an ounce. Oil gained 0.2% and base metal prices were mixed on the day.
The NZD opens at 0.8320 USD, 0.8825 AUD, 0.8580 CAD, 0.6130 EUR, 0.5175 GBP, & 80.65 JPY.
NZIER Business Confidence figures will be released at 10:00am today.
ANZ Job Ads & NAB Business Confidence data from Australian hits the tapes at 1:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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