The NZDUSD opens wide at 0.8520/50 this morning.
US non-farm employment, released Friday night, rose more than expected in April, with upwards revisions to prior months figures.
Their unemployment rate fell by 0.1% to 7.5%. However, it wasn’t all good news from the US, with their service sector falling to the weakest level in 9 months, and factory order fell sharply in March.
The positive US employment data sparked a ‘risk on’ rally. The US Dow Jones index traded above 15,000 and S&P500 over 1,600, both of which are all-time highs.
Copper price screamed more than 6% higher – its strongest gain in 18 months, while Gold price was relatively flat. The NZDUSD made solid gains to hit a high of 0.8547.
The USDJPY jumped more than 1%, while the NZDJPY followed suit.
The Gold price was little changed at USD$1470 an ounce, while Oil and base metal prices jumped higher.
Global equity market were climbed between 1% & 2% on the day.
The NZD opens at 0.8535 USD, 0.8280 AUD, 0.6505 EUR, 0.5480 GBP, & 84.60 JPY.
There is no domestic data on the calendar today. NZ employment figures, to be released Thursday, is the most significant release on the local calendar this week.
Australian retail sales and ANZ job ads figures hit the tapes at 1:30pm today, followed by euro-zone retail sales and ECB President speaking tonight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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