By Dan Bell
The NZD/USD has stabilised overnight and opens around 0.7470 this morning.
US GDP growth was unexpectedly revised down to 2% in the July-Sep quarter- down from previous estimate of 2.5%. Better than expected US data has been one of the only bright spots in the global economy recently, so the weaker number overnight has disappointed investors.
Sentiment was buoyed by an announcement from the International Monetary Fund who said they have increased their capacity to help struggling countries with short term liquidity problems.
Spain saw a sharp rise in the yields it was required to pay to sell €3 billion of three- and six-month bills overnight- EU economies continue to see their bond yields rise as investors demand higher returns for holding EU sovereign debt.
Commodity prices are higher overnight with the CRB Index up 0.5% led by oil prices up 1.9%, and gold up 1.42%.
US stocks are currently trading marginally weaker with the Dow Jones down -0.24%. The NYSE closes at 10am NZT so will see how they finish to guide sentiment thorugh the day.
The NZD opens around similar levels to yesterday against the major cross rates at 0.7590 AUD, 0.5530 EUR, 0.4780 GBP, 57.5 JPY.
Nothing to report on the local front today. From Australia we get some second tier data with CB Leading Index and Construction Numbers around midday.
Offshore China Flash Manufacturing PMI will be of interest at 3:30pm.
-------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.