The NZDUSD continues to rocket higher to open at 0.8570 this morning.
The NZDUSD traded to a 20-month high of 0.8577. The NZDJPY broke above a 5-year high to touch 85.61 and has risen a massive 22% since the start of 2013, while the NZDGBP hit an all-time high of 0.5600.
The NZ TWI (trade weighed index) raced to a record peak of 78.88, with no relief in sight for the export sector.
The US Fed policymakers raised the possibility that it may finish its bond-buying and quantitative easing program by year-end.
This is in contrast to the Bank of Japan who signalled they are prepared to offer further stimulus to the massive amount recent announced if inflation doesn’t reach 2% within 2 years. The USD/JPY hit a 4-year in response.
Gold prices plunged 2% to USD$1556 after it was reported Cyprus agreed to sell excess gold reserves to raise around EUR 400 million to part finance its bailout.
World equity markets stormed higher across the board. The US indices jumped up between 0.9% and 1.8%, while the UK and EU indices rose between 1.2% & 2.5%.
The NZD opens at 0.8570 USD, 0.8125 AUD, 0.6515 EUR, 0.5560 GBP, & 84.35 JPY.
Business NZ Manufacturing Index hit the tapes at 10:30am.
Australian employment data will be released at 1:30am – the previous reading here was a huge 71,500 jobs created, so will be interesting to see how today’s numbers print.
------------------------------------------------------------
To subscribe to our daily Currency Rate Sheet email, enter your email address here.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
No chart with that title exists.
1 Comments
I wonder if the further move upwards in the NZD has been triggered by Aussie institutions buying $700 million to buy Mighty River Power shares. And traders have then bought into and exacerbated that trend.
Given a fiscal multiplier of zero in our very open economy, it would actually have been better for the government to have rung their Aussie mates and given them the shares for free, as the damaging effect on the exchange rate and current account would not then have happened.
Of course giving them away for free would be ridiculous, so far better to not have sold them in the first place, and certainly not offshore.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.