The NZDUSD opens markedly higher 0.8215 this morning.
The NZD was under selling pressure ahead of the yesterday afternoons Reserve Bank of Australia interest rate decision and touched a 20-week low of 0.8055.
The RBA, as expected, kept their Cash Rate at 2.50% but were surprisingly hawkish in dropping the easing bias and toning down their rhetoric on calling for a much lower AUD.
The NZDUSD and AUDUSD both jumped higher in immediate response to the RBA comments, and continued to rally overnight. The NZDUSD touched a high of 0.8223 - an impressive move from the lows. The NZDAUD fell to 0.9130 before bouncing to back to 0.9200.
Overnight, the Fonterra dairy auction posted a good result, with prices gaining 0.5%.
NZ quarterly Employment figures hits the tapes at 10:45am. Good numbers will all but guarantee an RBNZ rate hike at their nextmeeting in March, and likely fuel a further rise in the NZD.
Global equity markets were lower on the day, apart from the US markets - Dow +0.3%, Nikkei -4.2%, Shanghai -1.1%, FTSE -0.3%, DAX -06%
The Gold Price fell 0.6% to USD$1252 an ounce. Oil prices dropped 0.2%.
The NZD opens at 0.8215 USD, 0.9200 AUD, 0.9095 CAD, 0.6075 EUR, 0.5030 GBP, & 83.40 JPY.
NZ Employment data will be released at 10:45am today.
US ADP employment figures, a precursor to Friday's US non-farm payrolls, hit the tapes tonight.
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.