By Dan Bell
The NZD/USD opens around 0.7950/0.7970 after trading to a high of 0.7997 and a low of 0.7907.
The focus remains on Europe where developments in Greece and Italy remain centre stage.
Italian bond yields (10 year) hit their highest rate since 1997 at 6.67%. Many analysts see this level as unsustainable as the Italian government faces slower growth and sovereign debt levels over 120% of GDP.
Italy faces a crucial vote on their budget tonight. A no confidence vote would see Berlusconi under pressure to resign which has already been rumoured but later denied overnight.
Greek Prime Minister George Papandreou has agreed to stand down so a coalition government can be formed. A new leader is expected to be announced in coming days- former ECB Vice President Loukas Papademos is apparently the front runner.
Global equity markets have had a mixed night with most European bourses weaker across the board while the US is currently sitting flat at the moment with 30 minutes before the NY close.
The EUR/USD opens around 1.3750, while the AUD/USD sits around 1.0360.
The NZD opens around current indicative levels against the major cross rates- 0.7670 AUD, 0.5780 EUR, 0.4960 GBP and 62.10 JPY.
Nothing to report on the local front today- from Australia we get Trade Balance and Business Confidence numbers out at 1:30.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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