By Dan Bell
The NZD was relatively subdued for most of last night, briefly posting new highs for the week against the USD before fading late in the session. NZDUSD starts the day at 0.8180.
US stocks had a lacklustre night, led lower by a 1% fall in the Nasdaq after Google reported earnings well below analysts’ expectations. Trading was suspended in the tech giant after it fell 10% in the wake of the earnings report. Have a look at the attached chart to get an idea of just how disappointed the market was.
After posting solid gains for most of the week, the EUR was hit by profit taking on uncertainty over the ongoing commitment of France and Germany to effect a resolution to some of the aspects of the ongoing debt crisis. This was made all the more poignant by the fact that Athens was largely on fire last night.
Commodities were modestly lower on the night. Copper was a notable disappointment, unable to hold on to gains made after yesterday’s slightly better than expected Chinese GDP and Industrial Production data.
NZ Migration data is released at 1045 this morning. Large option expiries at 1.3100 in EURUSD are expected to dictate today’s action, potentially capping short term upside potential from here.
Have a safe Labour weekend.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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