The NZD/USD opens higher at 0.8385, having hit a 1-month high of 0.8390 a few minutes earlier this morning.
The EUR/USD held just above the 4-month low but is still seen as vulnerable on fears the ‘Cypriot solution’ may cause investors to spurn euro zone assets or cause bank runs in Spain and Italy.
The NZD/USD and AUD/USD were boosted by demand from central banks and institutional investors seeking alternative investments to the euro. The NZD/EUR traded to a 7-month high of 0.6525.
US home prices and manufacturing data showed the economy is continuing to improve which highlights the divergence between the US and euro-zone economies.
Gold price fell to USD$1599.
World equity markets are generally higher across the board. The US indices climbed 0.7%.
The NZD opens at 0.8385 USD, 0.8005 AUD, 0.6520 EUR, 0.5530 GBP, & 79.30 JPY.
ANZ Business Confidence figures will be released today at 1:00pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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