The NZD/USD opens around 0.8410 after trading to an interbank high of 0.8442 overnight.
The NZD has been one of the strongest currencies overnight and has rallied against most majors to open at current indicative levels: 0.8055 AUD, 0.6566 EUR, 0.5569 GBP, 78.57 JPY and 0.8538 CAD.
Fonterra’s Global Dairy Trade auction this morning has seen average prices up 14.2% since the previous auction - another very strong result which means average dairy prices have recorded double digit gains in the last 3 auctions!
No change from the RBA yesterday but they maintain a slight easing bias - global concerns have been offset by improving domestic data - the pass through from previous rate cuts are yet to be fully realised. The market is still pricing in a rate cut from the RBA this year.
Not much to report from NZ today - from Australia we get Trade Balance numbers at 1:30pm.
This afternoon we get Non Manufacturing PMI from China.
Tonight the focus will be on ADP Employment data from the US which is seen as a precursor to the official Non Farms Payroll data on Friday night.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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