By Dan Bell
The NZD has outperformed most of other major currencies over the weekend to trade at new post float highs against the USD and opens just under 0.8800 this morning.
While the US appear to be getting closer to a deal on raising their debt ceiling before the 2nd Aug deadline, the US Dollar remains under pressure with the NZD around 0.8800, the AUD/USD over 1.10 and the EUR around 1.44 investors remain unconvinced that a deal will change the outlook for the USD.
GDP data for the US on Friday night came in at 1.3% versus 1.8% expected while the previous quarter was revised down from 1.9% to 0.4%.
Credit rating agency Moody's placed Spain's Aa2 rating on review.
The NZD opens on a firm toner against most major cross rates at 0.7980 AUD, 0.6100 EUR, 0.5360 GBP and 67.80 JPY.
On the local data front we get Labour Cost Index on Tuesday at 10:45 and Employment Data on Thursday.
From Australia we get the RBA announce interest rates on Tuesday, AU Retail Sales and Trade Balance on Wednesday.
Offshore we get the Bank of England and European Central Bank announce interest rates on Thursday and from the US the focus will be on the all important Employment Data on Friday night.
The NZD opens around 0.8695 USD, 0.7910 AUD, 0.6070 EUR, 676 0 JPY and 0.5315 GBP.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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