The NZDUSD opens at 0.6866
The NZDUSD is up nearly 1% after hitting 5 years lows yesterday morning. It continues to be volatile after another night of Greek drama:
- Greece will not repay a 1.6bn loan to the IMF by 30 June 2015, potentially setting up the biggest sovereign bankruptcy in history. However Greece may have another 30 day lifeline to allowing time to negotiate a deal.
- Sunday’s referendum is seen as the Euro vs the Drachma.
- S&P downgrades Greece’s long term debt rating – Believes 50% chance of Grexit – Describes Greek debt rating outlook as negative!
Meanwhile US pending home sales climbed nearly 1% in May and the President of the New York Fed said that a September interest rate hike is ‘very much in play’.
US equity markets were sold heavily while European equity markets were sharply lower. Shanghai was down again which makes a 12% fall in 2 days : Dow -1.95%, S&P 500 -2.09%, FTSE -1.97%, DAX -3.56%, CAC -3.41%, Nikkei -2.88%, Shanghai -3.45%, Hang Seng -2.68%.
Gold price is up $5.50 at $1178.55 an ounce, Oil (WTI) is down at $59.63 barrel.
The current indicative mid-rates are:
NZDUSD 0.6866 +0.8%
NZDEUR 0.6110 -1.0%
NZDGBP 0.4365 -0.6%
NZDJPY 84.17 +0.7%
NZDAUD 0.8927 +0.4%
NZDCAD 0.8505 -1.1%
The Key data release today is the ANZ Business Confidence at 1pm.
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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.