The NZD/USD opens around 0.8280 this morning after a choppy session on Friday night.
The US employment report was better than expected with Nov jobs growth at 203K vs. exp 185K and the unemployment rate dropping to a 5 year low of 7%.
The market initially reacted as expected with a strong surge in the US Dollar which saw the NZD drop to lows around 0.8140, but within a couple of hours the Kiwi rallied back to interbank highs around 0.8290.
US stocks rallied on Friday with the S&P 500 up 1.12%. Commodities were mixed with oil up 0.45% while gold lost 0.17%.
The NZD opens at current indicative mid rates: 0.9072 AUD, 0.6044 EUR, 0.5071 GBP, 85.36 JPY, and 0.8813 CAD.
From NZ today we get Manufacturing Sales at 10:45am. The focus this week will be the RBNZ on Thursday where no change is expected to the OCR at 2.5% but watch the statement for concerns about the sky rocketing NZD/AUD.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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