By Dan Bell
The NZD/USD continues to trend higher making a high of 0.8424 overnight as the US dollar remains under pressure. We open this morning around 0.8370.
The NZD is relatively unchanged against the major cross rates and opens around 0.5790 EUR, 0.7930 AUD, 0.5056 GBP and 64.00 JPY.
Global equities have had a mixed night with the Dow Jones Index finishing up marginally higher at +0.04% and the S&P 500 +0.09%.
Commodity prices have rallied overnight with the CRB Index up 1.21% led by oil prices up over 1% on a US inventory report showing gasoline stockpiles are lower than expected.
The AUD/USD broke through resistance at 1.05 to make a high of 1.06 overnight.
The unemployment rate in the UK rose to 7.9% compared to expectations of 7.7%. The number of people claiming the unemployment benefit also rose 37.1K compared to expectations of +20K. Despite this the GBP was one of the best performing currencies overnight!?
The Swiss National Bank continues to try and stem the rise of the Swiss Franc by announcing further liquidity measures to lower interest rates.
Nothing to report on the local front today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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