Double Shot Interview: HiFX's Dan Bell reviews the week's currencies moves, including the NZ$'s new record high, RBNZ's OCR and intervention talk, Greek debt woes and weak Aussie jobs

Double Shot Interview: HiFX's Dan Bell reviews the week's currencies moves, including the NZ$'s new record high, RBNZ's OCR and intervention talk, Greek debt woes and weak Aussie jobs

Bernard Hickey talks with HiFX Senior Dealer Dan Bell about the week's currencies moves, including the New Zealand dollar's rise to a post-float high of 83 USc after the Reserve Bank's Monetary Policy Statement and fresh signs of weak growth in America and Australia.

Bell reviewed the Reserve Bank's forecasts for economic growth and market interest rates and how that drove the New Zealand dollar to a record high late in the week.

He looked at comments from Reserve Bank Governor Alan Bollard about intervention.

See all our Monetary Policy Statement coverage here.

Bell said the New Zealand dollar reflected moves higher in commodity prices and he did not expect intervention by the central bank in foreign exchange markets.

Bell looked at the European Central Bank's decision to hold interest rates and the strength in the New Zealand dollar versus a weak British pound.

He also reviewed the speech this week by US Federal Reserve Chairman Ben Bernanke and whether it signalled a fresh round of quantitative easing.

Bell pointed to signs the Dow was approaching a critical level at 12,000.

Any break below that could signal a switch to a 'risk off' stance on global markets that could drive the commodity currencies such as the Australian and New Zealand dollars significantly lower.

Dan Bell is the Senior Dealer at HiFX, a UK-headquartered foreign exchange dealer with significant operations in Australia and New Zealand. It has a dealing room in Auckland. See more detail here.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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.

1 Comments

Comment Filter

Highlight new comments in the last hr(s).

The AUDNZD has given all the bearish signals:  The 20 SMA has crossed the 200 SMA and the 50 SMA has crossed the 100 SMA and Friday close was bellow the 10 SMA. I think that it is going to get worse into next week.  Speculators love that intervention talk, the NZD will go higher as the AUD loses momentum..

Your access to our unique content is free - always has been. But ad revenues are diving so we need your direct support.

Become a supporter

Thanks, I'm already a supporter.