The NZDUSD opens at 0.8375, having raced higher overnight.
Record dairy exports to China helped January's Trade Balance exceed forecasts, followed by Fonterra raising its farm gate milk forecasts by $0.35/kg to a record $8.65, helped to propel the NZD higher across the board.
The NZDAUD surged to 1-month high of 0.9368, aided by the above, an expected RBNZ rate hike on 13th March, and a weak Australia Capital Expenditure figures.
The USD edged lower, further boosting the NZD in the process, after US Durable Goods Orders and Weekly Unemployment Claims both disappointed. US Fed chair Yellen, in testimony before the Senate panel, acknowledged US economic data had been on the weak side, but she was unsure how much of this was weather related.
The markets remain jittery over the chances of Russian intervention in Ukraine. This is adding to emerging markets nervousness, and benefiting safe-haven currencies.
Global equity markets were mixed on the day - Dow +0.4%, Nikkei -0.3%, Shanghai -0.4%, FTSE +0.2%, DAX -0.7%
Gold prices are relatively steady at USD$1329. Oil prices dropped 0.5%.
The NZD opens at 0.8375 USD, 0.9345 AUD, 0.9335 CAD, 0.6105 EUR, 0.5020 GBP, & 85.50 JPY.
NZ Building Consents numbers be released at 10:45am and ANZ Business Confidence survey results at 1:00pm.
Tonight brings Euro zone Inflation figures, and a plethora of US data, including preliminary GDP, Chicago Manufacturing data, Consumer Sentiment, Pending Homes Sales, amongst others.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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