By Dan Bell
The NZD/USD is range bound for the time being. After drifting off to a low around 0.8610 early last night we traded to a high of 0.8676 and open at 0.8647 this morning.
With US debt discussions in focus investors remain weary which has seen equity and commodity markets weaker overnight. European equities were off 1% while in the US the Dow Jones is down 0.7%. Gold prices made a new all time high over 1,620 on safe haven demand and the commodities CRB Index is down 0.60% led by oil prices down 0.73%.
Moody’s downgraded Greece a few more notches to junk status and said it was almost certain to put a default tag on its debt as a result of the EU bailout package announced last week.
The NZD remains at familiar levels against most of the major cross rates. Against the AUD we briefly touched an interbank high around 0.80 yesterday but have drifted off back to 0.7970 this morning. Against the EUR we open just over 0.60 and against GBP just over 0.5300 and unchanged against JPY at 67.70.
NZ Trade Balance numbers for June are released at 10:45 this morning and in Australia we get RBA Governor Glenn Stevens speaking at 3pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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