The NZDUSD opens lower at 0.8300 this morning.
Global risk aversion jumped higher on continued geopolitical tensions in Russia & Ukraine. The USD strengthened and NZD fell as a consequence.
Russia placed combat troops on high alert for war games near the Ukrainian border, in a powerful gesture towards their former Soviet state.
The USD extended gains after data indicated new homes sales surged to a 5.5 year high - the NZDUSD traded to a low of 0.8282.
US Federal Reserve chair Janet Yellen is expected to reaffirm the Fed's commitment to a continued tapering of its bond-buying program in testimony tonight before the Senate Banking Committee. This should be of benefit to the USD.
Global equity markets were mixed on the day - Dow +0.3%, Nikkei +0.5%, Shanghai +0.3%, FTSE -0.5%, DAX -0.4%
Gold prices dropped to USD$1329. Oil prices rose 0.2%.
The NZD opens at 0.8300 USD, 0.9275 AUD, 0.9250 CAD, 0.6065 EUR, 0.4985 GBP, & 85.05 JPY.
NZ Trade Balance & Visitor Arrival numbers will both be released at 10:45am.
Australian Capital Expenditure figures hit the tapes at 1:30pm.
US Weekly Unemployment Claims, Durable Goods Orders, plus some Fed-speak hit the tapes tonight. However, continuing developments in Ukraine are likely to dominate.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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