The NZDUSD opens markedly higher at 0.8665 this morning.
The USD was weaker across the board, which helped drive the NZDUSD towards 1-week highs.
The EUR rose after European Central Bank policymakers continued to hold down expectations any imminent increase in stimulatory measures. This also added the NZD rally.
The USD was weak despite tensions escalating once again between the US and Russia over Ukraine. The US have accused Russia of using agents and special forces of stirring separatist unrest in eastern Ukraine, and that Moscow could be trying to prepare for military action as per Crimea.
The JPY strengthened as the market trimmed back expectations of additional monetary easing by the Bank of Japan, while the GBP increased almost 1% after data showed the UK grew at its fastest quarterly rate since 2010.
Global equity markets were mixed on the day - Dow +0.1%, Nikkei -0.1%, Shanghai +2.4%, FTSE -0.5%, DAX -0.2%
Gold prices increased 0.8% to USD$1308. Oil prices jumped 1.7%.
The current indicative mid-rates are:
NZDUSD 0.8665
NZDEUR 0.6280
NZDGBP 0.5175
NZDJPY 88.15
NZDAUD 0.9260
NZDCAD 0.9470
There is no data on the domestic calendar today.
Australian Consumer Sentiment and Home Loan data hits the tapes after lunch.
The minutes of the last US FOMC meeting will be released Thursday morning.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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