Investors’ risk appetite faltered on Friday as the prospect of a US government shutdown (finally) began to rattle markets. The NZD/USD, along with the AUD/USD, was a victim of rising political uncertainty, although the kiwi again found solid support in the 0.8240/60 window. It opens this morning around 0.8270.
Investors are now holding their breath to see if a partial US government shutdown can be averted. At this stage, it looks as if we will get a shutdown of some sort. The political picture in Europe isn’t particularly encouraging either. Germany is still without a government, and Italy’s is now on the verge of collapse.
Read the full report: FX Daily
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