By Dan Bell
The NZD/USD has failed to move higher despite a stronger night for global equities. We open this morning around 0.8270.
US equities finished up for the third day in a row with the Dow Jones Index up 1.29% and the S&P 500 up 1%.
The US Dollar is marginally stronger against most major currencies. The AUD/USD opens at 1.0470 and the EUR/USD at 1.44. The market appears to be more realistic about Bernanke’s speech on Friday where chances of QE3 being announced are quite low.
Gold prices have been hammered overnight dropping $100.00- from 1,850 to 1,750 (-5%). Considering the huge spike in gold prices lately it is not overly surprising to see some profit taking!
The NZD has had a quiet night against the major cross rates and opens around 0.7900 AUD, 0.5740 EUR, 0.5050 GBP and 63.70 JPY.
US Durable Goods orders overnight were stronger than expected in July up 4% vs. 2% exp, alleviating concerns the US economy is falling off a cliff.
NZ Q2 Retail Sales released at 10:45 this morning with market exp +0.7%.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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