The NZDUSD is at 0.8080 this morning.
The NZDUSD was battered 2.5% lower last week and hit a 6-month low of 0.8063 on Friday night/Saturday morning. The market is still looking to sell NZDUSD on any rallies.
Rumours the European Central Bank was checking banks’ preparedness to handle negative interest rates pushed the EURUSD down to level last seen 6 weeks ago.
US consumer sentiment reached a 6-year high, which indicated Americans are feeling more confident about their financial and economic prospects. The USD and equity markets both rose in response.
The USD also benefited from news that some US Federal Reserve officials would like to begin scaling back its asset-buying and stimulus program.
The USDJPY topped 103.00 level for the first time in 4 ½ years, while the NZDJPY remains at the lower end of recent ranges.
Global equity markets rose across the board. USD indices climbed circa 1%, while the Shanghai index jumped 1.5%.
Gold prices fell for the 7th straight session to trade at USD$1358 an ounce. Copper rose and other base metals prices were mixed.
The NZD opens at 0.8080 USD, 0.8385 AUD, 0.6295 EUR, 0.5320 GBP, & 83.15 JPY.
There is no data on the domestic calendar today.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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