By Dan Bell
The NZD/USD traded to a high of 0.8278 overnight after US equity markets opened with a positive tone giving risk assets a boost across the board.
The US equity market opened and immediately surged 2% but has come off these highs to finish up 0.30% this morning- Dow +0.34%, S&P +0.26%.
Not much to report on the data front. Investors continue to expect Fed chairman Bernanke to hint at further monetary stimulus at his Jackson Hole speech on Friday- which should keep markets range bound this week.
Gold prices made another record high of 1,896 while other commodities are mixed.
The AUD/USD is trading back over 1.04 and the EUR/USD is holding around 1.4350.
The NZD is up against most major cross rates with the NZD Trade Weighted Index at 70.87 this morning to be +0.80% from yesterday. The NZD opens around the following trading levels: 0.7910 AUD, 0.5740 EUR, 63.30 JPY, 0.50 GBP.
On the local front the focus will be on the RBNZ Inflation Expectation reading at 3pm.
Offshore China Flash Manufacturing PMI data at 2:30 will be of interest.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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