By Dan Bell
A positive night for global markets has seen the NZD/USD recover from yesterday’s lows around 0.8120 to make an interbank high of 0.8220.
Profit taking has seen us drop this morning to open around 0.8165/0.8175.
Global stock markets are up across the board overnight with the S&P 500 up 0.74%. Commodities have also had a positive night with the CRB Index up 0.55% led by Oil prices up 1.5%.
A European Central Bank official signalled they may be prepared to add more liquidity to the European financial system if needed (i.e.: revive their bond-purchasing program - LTRO3?) which has seen Spanish and Italian bond yields ease from recent highs.
First quarter earnings season in the US kicked off yesterday with Alcoa announcing a better than expected result.
The NZD opens at current indicative levels -0.7920 AUD, 0.6220 EUR, 66.0 JPY, 0.513 GBP.
On the local front we get Electronic Card Spending and Manufacturing data.
From Australia the focus will be on Employment Numbers at 1:30pm NZT.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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