By Dan Bell
The NZD/USD opens in the high 0.8200’s as risk appetite remains buoyant and the USD remains under pressure.
Global equity markets continue to recover from recent weakness with European markets up 0.5-1% while in US the Dow finished up 1.36%. Friday nights positive finish has the Dow Jones Index up over 5% from recent lows.
Manufacturing data from the US was better than expected which has followed a better than expected Purchasing Managers Index the day before. With the recent run of soft data from the US lately investors have had a boost of confidence from these better reports.
The AUD/USD pushed to an interbank high of 1.0787 and opens around this level this morning. A raft of economic data is released from Australia this week including the RBA tomorrow afternoon.
The EUR/USD finished over 1.45 and looks set to make further gains as the ECB are expected to raise interest rates this week and concerns in Greece have settled down (for now).
The NZD opens against the AUD under 0.7700 and the EUR under 0.5700 but continues to look firm against JPY just under 67.00 and GBP at 0.5150.
On the local data front this week, markets will be watching NZ GDP on Thursday.
Offshore, the markets will be focused on the RBA, BoE and ECB interest rate announcements and in the US the Non Farm Payrolls report on Friday night.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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