By Dan Bell
The NZD/USD bounced back to a high of 0.8405, having flirted with the low 0.8300’s earlier in the trading session. It currently sits around 0.8380.
The NZD and other ‘risk assets’ such as Equities, Gold, and Base Metals were back in vogue after yesterday’s sell off.
The primary catalyst was positive Chinese purchasing manager index which suggests Beijing has avoided a hard economic landing and that manufacturing is continuing to expand, while data out of the US was also encouraging.
The 19-commodity CRB Commodity Index climbed 0.6% on the day. Gold prices rebounded 1.5% to USD$1721, having fallen by up to 5% yesterday.
Copper prices and base metals also clawed back some it losses to close the day around 1.2% higher. Similarly, Oil prices rose by circa 1.5%.
Equity markets were marginally higher across the board overnight. The US S&P500 currently up 0.5%, while the Dow Jones Index is 0.2% higher.
The NZD opens at 0.8380 USD, 0.7765 AUD, 0.6290 EUR, 0.5250 GBP, & 67.95 JPY.
On the local front we get ANZ Commodity Prices at 1.00pm, while there is nothing on the schedule from Australia.
-----------------------------------------------------------
To subscribe to our daily Currency Rate Sheet email, enter your email address here.
-----------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
(Updated with Dow close)
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.