By Dan Bell

Encouraging US non-farm payrolls employment data, improved US consumer and better factory activity data, as well as stronger than forecast euro-zone manufacturing figures resulted in a ‘risk on’ environment. The EUR/USD hit a 14-month high.

Global equities, oil, gold, and base metal prices all rallied. In fact, US equity markets rose to pre-financial crisis peaks.

NZD/JPY established a new 4 ½ year high of 78.55, NZD/AUD touched a 2 ½ year peak of 0.8140, while the NZD/GBP hit a record all-time high of 0.5410.

The NZD opens around 0.8135 AUD, 0.6215 EUR, 0.5405 GBP, & 78.70 JPY.

It is a big data week on the local front with ANZ Commodity prices out at 1:00pm today, Labour Cost Index on Tuesday, and Employment data Thursday out domestically.

Australian Building Approvals & Job Ads today, RBA Cash Rate decision and Euro-zone Retail Sales Tuesday, Aussie Retail Sales Wednesday followed by Australian employment data and UK rate meeting Thursday, and Chinese Trade Balance, Inflation Data, New Loans, & Money Supply Friday, along with US Trade Balance and Wholesale Inventories.

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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here