By Dan Bell
The NZD/USD traded in a tight range overnight between 0.7919 and 0.7977. We open around 0.7970 this morning.
Silvio Berlusconi has proposed to resign after Italy’s parliament passed the new budget containing the reform measures agreed with the EU. Berlusconi lost his majority in the process and is expected to step down by the middle of November.
Global equity markets are mostly higher overnight with the S&P 500 currently up 0.73% while commodities are marginally higher with the CRB Index up 0.25%.
The NZD is relatively unchanged against the major cross rates and opens around 0.7670 AUD, 0.4945 GBP, 0.5760 EUR, 61.90 JPY.
Not much to report on the local front. From Australia we get housing finance at 1:30. At 3pm China release a raft of data including CPI, industrial production and retail sales which will be the focus this afternoon.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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