The NZD/USD opens around 0.8130 this morning after a volatile session which saw the NZD make an 8 month low around the 0.80 level, before racing 165 points higher to hit an interbank high of 0.8170 overnight.
The USD is broadly weaker overnight with the AUD and EUR both up over 100 points from recent lows.
At this stage the move in the NZD/USD looks more like a ‘short squeeze’ driven by positioning - as the data from the US was actually pretty solid overnight.
US stocks finished down 0.29% as measured by the S&P 500. This was a reasonable finish after yesterday’s 7.3% drop in the Japanese stock market!
The NZD opens at current indicative mid rates: 0.8340 AUD, 0.6292 EUR, 0.5390 GBP, 83.00 JPY and 0.8385 CAD.
On the domestic front we get NZ Trade Balance numbers at 10:45am.
Tonight the market will be focused on the German IFO Business Climate reading and US Core Durable Goods Orders.
It’s a public holiday in the US and the UK on Monday, so a consolidation in recent moves is more likely as people head off for a long weekend.
------------------------------------------------------------
To subscribe to our daily Currency Rate Sheet email, enter your email address here.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
No chart with that title exists.
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.