The NZD/USD opens around 0.8630 this morning after hitting an interbank high of 0.8675 overnight.
The NZD continues to rally against most major currencies as global investors hunt for higher yields.
Global stock markets have finished in positive territory with the S&P 500 up 0.36% to new all time highs.
US jobless claims (the number of people receiving the unemployment benefit) fell 42k to 346k for the week ending 6th April.
This was better than expected result and has given the market more confidence US employment isn’t as bad as last month’s Non Farm Payrolls report suggested.
The NZD opens at 0.8180 AUD, 0.6586 EUR, 0.5610 GBP, 86.16 JPY, and 0.8723 CAD.
On the domestic front we get NZ Food Prices at 10:45am. This afternoon the Bank of Japan Governor is speaking.
The market is paying more attention to Japan who are undertaking a massive quantitative easing program.
As yields in Japan drop investors will seek better returns offshore - which is another reason the market is so bullish the Kiwi at the moment. Tonight we get US Retail Sales.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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1 Comments
As yields in Japan drop investors will seek better returns offshore - which is another reason the market is so bullish the Kiwi at the moment.
I think they already fell to 45bps and backed up to 55bps as the big boys piled out for greener YEN carry trade markets as you say - they will nurse position waiting to liquidate in time to collect the $ bonuses. Oh to be a bond whale once again.
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