By Kymberly Martin
NZ Dollar
The NZD has outperformed over the past 24-hours. The NZD/USD trades at 0.7800 this morning.
In thinned markets due to the US Veteran Day holiday, the NZD pushed higher against a softer USD in the early hours of this morning. From intra-night lows below 0.7720 the NZD/USD now trades at 0.7800. Resistance is now eyed in the 0.7820-0.7840 window.
The most notable move on the crosses was for the NZD/JPY. This was on a one-way path north from early last evening. It has pushed above 90.20, its highest level since October 2007. This coincides with a similar move in the USD/JPY.
The NZD also strengthened against its key European peers. The NZD/EUR and NZD/GBP have pushed up to 0.6260 and 0.4910 respectively.
Meanwhile the NZD/AUD continues to flirt with the 0.8990 level. We see the cross as comfortably within its current short-term ‘fair value’ range of 0.8870-0.9070. We see the cross oscillating around current levels over coming months before drifting lower later next year. We see it approaching 0.8600 by the end of 2015.
For today, attention locally will be on the release of the RBNZ’s Financial Stability Report, the AU Westpac consumer confidence survey and wage price index.
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Majors
The NZD and AUD have been the strongest performers against a marginally weaker USD over the past 24-hours. The JPY has underperformed.
It was another relatively quiet night, as the US celebrated Veteran’s Day holiday. The S&P500 is currently flat while the Euro Stoxx 50 closed up 0.3%.
Our global risk appetite index (scale 0-100%) remains at a healthy 69%. The WTI oil price has continued to fall, to US$76.60/barrel, while the gold price has rebounded 1%.
The USD/JPY has pushed up to its highest levels since late 2007. Speculation abounds that Japan’s Prime Minister Abe is preparing to call a snap early election next month, in order to shore up support, in the backdrop of an economy still struggling to gain momentum. The USD/JPY trades at 115.60 this morning.
This move helped support the USD index up until midnight, but it has subsequently fallen away, to the benefit of most of its peers. The EUR/USD sits a little higher at 1.2450 at present.
Meanwhile the AUD/USD has extended its recent rebound. From intra-night lows below 0.8600 it now sits at 0.8670. The AU focus today will be the release of the Westpac consumer confidence survey and the Q3 wage price index.
Tonight, UK September employment data will be released along with Eurozone industrial production data. The Bank of England is also due to release its inflation report and the Fed’s Plosser is scheduled to speak in London.
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