By Dan Bell
The NZD/USD traded to a fresh 4 month high of 0.8350 overnight and opens this morning around 0.83.
The US Dollar remains under broad pressure with the AUD/USD over 1.07 this morning, while the EUR hit a high over 1.32.
Investors started feeling more upbeat after yesterday’s better than expected Chinese Manufacturing PMI, which was supported by better than expected PMI’s from Europe and the UK and followed by than better ISM manufacturing data from the US.
US ADP Employment Data also came in better than expected which is seen as a precursor to the main event this week - US Non Farm Payrolls and US Unemployment rate on Friday night NZT.
Global stock markets rallied overnight. The U&P 500 is currently up 1% with another hour or so to go, while commodities have had a mixed night with the CRB Index slightly weaker overnight.
Most market participants assume a deal between Greek Private Bond Holders and EU officials is close to being finalised which has supported the recent corrective rally in the EUR/USD.
The NZD remains firm against the major cross rates at 0.7770 AUD, 0.6310 EUR, 0.5250 GBP and 63.4 JPY.
Not much to report on the local front - from NZ we get the ANZ Commodity Price Index this afternoon and from Australia we get Trade Balance data.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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