By Dan Bell
The NZD/USD opens at 0.8105 this morning after a weekend that saw the risk-switch firmly back in the ‘on’ position.
Dismal US employment numbers (+96K vs 130K) and downward revisions to previous numbers saw QE3 expectations come back into focus, with the FOMC due to meet next on Thursday night. With this on the back of the ECBs plans to reduce European borrowing costs last week, markets start the week in a clearly buoyant mood.
Commodities and equities all saw gains as investors exited their ‘safe-haven’ holdings, with gold up $35US, and the S&P up 0.4%, to post a four-year high – CRB index +1.0%
Some of the market euphoria was dampened by poor Chinese PPI data (-3.5%) which was released on Sunday..
Stock markets all higher on Saturday morning’s news – Dow Jones +0.11%, S&P +0.40%, FTSE +0.30%
The NZD opens the crosses - 0.7815 AUD, 0.6335 EUR, 0.5065 GBP and 63.50 JPY.
RBNZ on Thursday – Dr Bollards last meeting – no change expected.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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