The NZDUSD opens at 0.8080 this morning.
USD strengthened overnight after robust US data - home prices had their best annual gain in 7 years, while consumer confidence surged to 5-year highs – this is reinforcing the view the US Federal Reserve will start to taper its massive stimulus program in the coming months.
European Central Bank Board members said the very loose and stimulatory monetary policy will remain in force for as long as necessary, and that interest rates could be cut further if needed.
The NZDUSD traded as high as 0.8125 before the stronger USD began to weigh on it.
Global equity markets all made solid gains yesterday. USD equity rose 0.7%, while the European and Asian indices increases between 1.0% & 1.6%.
Gold prices were whippy, but eventually dropped to USD$1380 an ounce overnight. Oil prices rose 1%.
The NZD opens at 0.8080 USD, 0.8400 AUD, 0.6285 EUR, 0.5370GBP, & 82.65 JPY.
There is no domestic data scheduled today.
Bank of Japan Governor speaking is the most noteworthy event on the 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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