The NZDUSD opens 0.7% higher at 0.8070 this morning.
The NZD rally continued yesterday evening after a healthy round of Chinese data - Fixed Asset Investment, Industrial Production, & Retail Sales all exceeded expectations. This is reinforcing views that the Chinese economy is stabilising after slowing for the past 2 years.
Global risk appetite increased after Syria accepted a Russian proposal to give up its chemical weapons, making investors less nervous about any potential US military strikes. The higher-yielding NZD made further gains to a 3-week high in response.
The USD rose to a 7-week peak versus the JPY. The NZDJPY traded over 81.00 – a level last seen 31 May.
Global equity markets were markedly higher on the day – Dow +0.8%, Nikkei +1.5%, Shanghai +1.4%, FTSE +0.8%, DAX +2.1%
The Gold Price was plunged 1.5% to USD$1364 an ounce. Oil slid 2.0% and base metal prices were sharply lower across the board on the day.
The NZD opens at 0.8070 USD, 0.8660 AUD, 0.6080 EUR, 0.5125 GBP, & 80.95 JPY.
There is no data on the domestic calendar today, although Thursday brings the RBNZ Official Cash Rate decision and released statement.
Westpac Consumer Sentiment data hits the tapes from Australia at 12.30pm, and President Obama is scheduled to speak on the Syria crisis at 1.00pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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