The NZDUSD opens at 0.8385 this morning.
Big news overnight in the currency markets was the USDJPY smashing through the 100.00 barrier to reach 100.78 – a 4 year high.
Massive stop loss orders were triggered on the break of 100.00, which resulted in USD strengthening sharply across the board.
The NZDUSD, which had traded as high as 0.8475 early this morning, plunged to a 6-week low of 0.8355.
The EUR/USD tumbled to 2-week lows, pressured in part by a weak Spanish debt auction and upbeat US jobless claims report which is suggesting their labour market is stabilising along with housing.
Employment data from NZ and Australia created some volatility yesterday. Both employment reports came in considerably better than expected – the NZDUSD and AUDUSD jumped sharply higher in response, but this strength proved to be temporary.
NZDAUD ranged 0.8230 to 0.8320 the past 24 hours
Might River Power shares float today - will be interesting to see what premium (if any) they open at to their $2.50 issue price.
Global equity markets were generally a little weaker on the day.
The Gold price dropped 1.1% to USD$1456 an ounce, and base metal prices mostly slightly lower
The NZD opens at 0.8385 USD, 0.8310 AUD, 0.6425 EUR, 0.5425 GBP, & 84.35 JPY.
Nothing is scheduled on the domestic data calendar today.
Reserve Bank of Australia Monetary Policy Statement will be released at 1:30pm – should be interesting given Tuesday’s rate cut.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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