Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that weak Australian export figures yesterday indicated today's first quarter GDP figures are likely to show a contraction of up to 1.25% because of heavy flooding in Queensland.
This weak Australian data softened expectations of an early and sharp hike in interest rates by the Reserve Bank of Australia. See more here at The Australian.
This made the New Zealand dollar relatively more attractive than the Australian dollar, pushing it up over 77 Australian cents.
The New Zealand dollar also rose on a Trade Weighted Index basis to over 71 after it surged to a record high 50.09 pence and hit a new record high of 82.6 USc yesteday after strong business confidence figures.
Elsewhere, Moody's warned it may downgrade Japan's credit rating because of its high public debts, slow economy and ageing population.
Meanwhile, in Europe, there is fresh hope of a new bailout for Greece.
This boosted the euro and settled markets somewhat, for now. See more here at Bloomberg.
Some critics, however, believe Europe's problems are far from solved and and the latest bailout is simply another attempt to extend, pretend and shuffle away debts that will eventually have to be restructured.
The Dow rose 1% on relief that the European Debt crisis may have calmed for now. See more here at Bloomberg.
However, US consumer confidence fell to a six month low (see more here at Bloomberg) and US house prices dropped in March to their lowest level since 2003. See more here at Bloomberg.
This is raising expectations that the US Federal Reserve will have to resume money printing after its current programme of Quantitative Easing ends on June 30.
That would further weaken the US dollar against many currencies, particularly those with higher interest rates and that benefit from high commodity prices.
That includes the New Zealand and Australian dollars.
(Updates with links to news reports)
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