Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, includings that hopes for a solution to the US debt ceiling crisis have emerged, boosting global markets and the New Zealand dollar.
The Kiwi dollar rose to a fresh record high of 85.7 USc around 2am this morning and is was around 85.5 USc in early trade as more relaxed global investors looked for riskier trades such as the commodity-linked currencies such as the New Zealand dollar.
Our currency also rose to a post-float record high of 53p and 60.5 euro cents.
The Trade Weighted Index rose to a three year high of 73.9 and has now risen 17% since mid-March.
The Reserve Bank last intervened to push the currency down in 2007 when the TWI rose over 76.
Meanwhile, US stocks rose 1.6% on the hopes for a US budget deal. Barack Obama endorsed a US$3.7 trillion deficit reduction plan from a 'gang of six' senators overnight that would cut spending immediately by US$500 billion and increase taxes by US$1 trillion. See more on the rise in stocks here at Bloomberg.
Any plan has to be approved by both houses, including Tea Party Republicans who are vehemently opposed to any tax increases. See more here on the 'Gang of Six''s plan at Reuters.
Oil prices rose 1.7% and the gold price fell back below US$1,600/oz on more relaxed views on global markets. European markets were in a holding pattern ahead of a crisis meeting on Thursday.
Also, Rupert Murdoch testified in front of a British parliamentary committee and was slapped in the face by a cream pie wielding protestor who called him a "naughty billionaire".
His wife Wendi Deng slapped the protestor back. See more at BBC.
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