The NZD/USD opens at 0.8410 this morning after US payrolls figures disappointed.
US employers hired at the slowest pace in 9 months – 88,000 jobs created versus 200k expected.
These figures extend the string of recent poor data from the States, and raises concerns about the strength of their economic recovery. The USD was generally weaker in response, and EURUSD rallied strongly.
The NZ TWI (trade weighed index) rose above 77.50 for the first time ever, while the NZDJPY surged to a 4 ¾ year high of 82.69. The NZDAUD moved back above 0.8100 – a level last seen 5 weeks ago.
North Korea continues its saber rattling – its impact on global markets has been almost non-existent.
Legendary hedge fund manager and ‘the man that broke the pound’ George Soros has warned that JPY selling “may become like an avalanche” if the Japanese populace realise the JPY weakening will continue and want to put money offshore.
The NZD would be an attractive recipient from any JPY selling as investor seek to take advantage of NZ’s higher interest rates.
Gold prices trades higher at USD$1581, while Copper prices fell to within sight of 8-month lows.
World equity markets were weaker across the board, with the exception of the Japanese Nikkei index.
The NZD opens at 0.8410 USD, 0.8115 AUD, 0.6485 EUR, 0.5495 GBP, & 82.60 JPY.
It is a light week on the domestic data front, with Tuesday’s release of Business Confidence being the most notable.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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