The Opening Bell: Where currencies start on Tuesday, April 7, 2015

Short headline:  NZD/AUD peaked at 0.9975 Tweet By Dan Bell The NZDUSD opens at 0.7545 (mid-rate) this morning. The NZDUSD traded back above 0.7600 following a disappointing Non-Farm Payroll number, with the USD losing ground against all its major trading partners. U.S. Non-Farm Payroll employment rose by 126k jobs in March following a downwardly revised increase of 264k jobs in …

Cheaper money will be here for a long time says Roger J Kerr. That means investment hurdle rates can be lower. Now is the time to take advantage he says

Short headline:  Market conditions ripe for corporate debt issuance Tweet By Roger J Kerr It is highly unusual in interest rate markets to have record low market rates occurring at the same time as record low (post GFC) credit spreads across the credit curve. The normal situation is that credit spread are compressed to low levels when underlying interest rates are at …

The NZ Initiative's Jason Krupp says solicitors Mark Campbell and William Findlay are right to point out the costs of poor health and safety practices, but fail to consider whether all 'practicable steps' is an appropriate rule

Short headline:  Solicitors ignore 'practicable' madness Tweet By Jason Krupp* Recently, solicitors Mark Campbell and William Findlay of Russell McVeagh responded to an editorial I had written that questioned WorkSafe’s decision to prosecute the Ministry for Social Development for a shooting in Ashburton. The case involved an individual who wordlessly walked into a Work and Income office with a shotgun, …

'Part of the NZD/USD’s persistent strength last week is a function of the NZD/AUD play, which is ripe to being unwound': BNZ

Short headline:  USD shunted lower on jobs report Tweet By Raiko Shareef The defining feature of the long weekend’s economic news was the very soft US employment report on Friday night. The USD weakened sharply, but recovered nearly all of its losses this morning on some flow-driven, liquidity-impaired appetite to buy USD. If anything, the move this morning helps to square the …

Roger J Kerr says markets don't expect NZD-AUD parity is sustainable because income differentials can't support it and the AUD is due for a 'long overdue' correction higher

Short headline:  Kiwi dollar remains in mid 70USc trading range Tweet By Roger J Kerr Last week the considered view was that the positive and negative forces being applied to the NZD/USD exchange rate were evenly balanced and a continuation in the 0.7200 to 0.7600 trading range was by far the most probable scenario going forward. Recent financial news and events confirm …