The NZD/USD opens at 0.8420 this morning after hitting a multi month interbank high around 0.8440 overnight.
Global markets have rallied on news that US politicians have reached a debt deal, albeit a temporary one! Under the agreement they will fund the government through Jan. 15, 2014, and suspend the debt limit until Feb. 7 which will set up another round of negotiations in early 2014. The plan will be put to vote today but is expected to go through without any issues.
The S&P 500 is up 1%. Oil prices are up 1.06% and Gold has rallied 0.61%. ‘Risk on’ currencies like the NZD and AUD have outperformed and the USD is under pressure.
Yesterday’s Q3 NZ CPI numbers (+1.4% vs exp +1.3%) have given the market more reason to believe the RBNZ will start hiking rates early next year which is also supporting the NZD.
The NZD opens at current indicative levels: 0.8822 AUD, 0.6223 EUR, 0.5280 GBP, 83.13 JPY, 0.87 CAD.
From NZ we get Consumer Confidence data. From Australia we get Quarterly Business Confidence. Tonight the US report Jobless Claims and Philly Fed Manufacturing Index.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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