By Dan Bell
The NZD/USD remains at post float highs around 0.8550 after a quiet night as markets await further news on European and US debt concerns.
The general consensus is some kind of deal will be announced for Greece at the EU summit tonight and that the US will raise the debt ceiling before the 2nd Aug deadline … but risks remain.
Fonterra’s milk auction result yesterday saw prices drop 5.1% which means prices are now 20% off recent historical highs.
Global equity and commodity markets had a quiet night with the Dow Jones currently down -0.12% while commodity prices as measured by the CRB Index are slightly weaker at -0.08%.
The EUR/USD has been stronger overnight pushing over 1.42 while the AUD/USD opens unchanged around 1.0740.
After spiking to another new post float high of 0.5323 the NZD/GBP opens under 0.5300 this morning. The NZD remains at elevated levels against most of the major cross rates and opens around 0.60 EUR, 0.7970 AUD, and 67.40 JPY.
Not much to report today - locally we have Migration data at 10:45am and Credit Card Spending at 3pm.
From Australia we get NAB Quarterly Business Confidence 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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