By Dan Bell
The NZD/USD opens this morning around the 0.8300 level, relatively unchanged from yesterday as the markets have a quiet night with the US on holiday for 4th July.
Credit rating agency S&P said it would treat a plan by French banks to rollover privately held debt to Greece as a default. If a technical default was to occur the ‘credit default swaps’ used as insurance on Greek debt may be triggered which could spark further concerns for global credit markets and cause another round of risk aversion.
Weaker than expected retail sales and building approvals from Australia yesterday had the AUD under pressure and has the NZD/AUD trading back over 0.7700 this morning.
The NZD opens around familiar levels against the EUR just under 0.5700 and is unchanged against GBP at 0.5150. Against the Japanese Yen we are sitting just under 67.00- not far off a 12 month high.
Today the focus in NZ will be on the Quarterly Survey of Business Opinion at 10am.
From Australia we have Trade Balance at 1:30pm and the RBA Rate announcement and statement at 4:30pm- cash rate is expected to remain unchanged at 4.75% but watch the statement closely for clues on the next move.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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