The NZDUSD opens higher at 0.8375 this morning, having touched an 11-week high of 0.8430 overnight.
NZ Business Confidence numbers, released yesterday, surpassed expectations by a wide margin. This, along with reports of a large UK-based fund buying NZD overnight, helped propel the kiwi to recent highs.
The NZDAUD hit a 5-year high of 0.9365, as the NZDUSD outperformed the AUDUSD. The NZDJPY surged to 87.25, a level last seen in early 2008, while the NZDEUR traded to a 8-week high of 0.6160.
All this NZD strength will not be pleasing the RBNZ ahead of their expected interest rate hikes later this quarter.
US December Retail Sales figures, released overnight, were stronger than forecast while US inventory business numbers were also solid. These statistics are bolstering the view the US economy is gathering steam, and helped to push equity markets higher.
Global equity markets were lower on the day - Dow +0.6%, Nikkei -3.0%, Shanghai +0.9%, FTSE +0.1%, DAX +0.3 %
The Gold Price fell to USD$1242 an ounce. Oil prices fell 0.5%.
The NZD opens at 0.8375 USD, 0.9345 AUD, 0.9170 CAD, 0.6125 EUR, 0.5095 GBP, & 87.25 JPY.
NZ Food Price Index will be released at 10:45am.
Email:
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.