The NZD/USD opens around 0.78 after trading to an interbank high of 0.783 overnight.
Global markets had a positive night with the S&P 500 up 0.54%, commodities followed suit with gold up 2.35% and oil up 1.5%.
The NZD opens at current indicative levels: 0.8450 AUD, 0.5980 EUR, 0.5132 GBP, 77.76 JPY, 0.8196 CAD.
Investor sentiment was boosted by better than expected manufacturing data from Japan, the UK and Europe.
US ISM manufacturing was also better than expected but the hiring component was the weakest in nearly 4 years suggesting US employment growth remains sluggish which could reduce the urgency of Fed tapering.
On the domestic front we get the ANZ Commodity Price Index at 1pm. From Australia we get the RBA at 4:30pm NZT.
With the recent drop in the AUD, the market is not expecting the RBA to cut rates again today but is still pricing in further easing later this year.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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