By Dan Bell
The NZD/USD rallied on Friday, tracking Wall Street, as Italy passed Eurozone demanded austerity measures and hopes surrounding the new Greek government fuelled risk appetite once again.
This week’s Italian bond auction (3 bn EUR, 5 year bond auction Monday) will be watched closely by markets waiting to see how the state of Italy develops
Silvio Berlusconi resigned over the weekend as well, replaced by Mario Monti, a former top European commissioner. Markets have reacted kindly to the glaring difference between Monti and his predecessor.
The EURUSD has bounced back to 1.3800, the AUDUSD is back to 1.0300 having been to 1.0100
US stock markets finished higher, Dow Jones +2.19%, S&P +1.92%, CRB Index +0.4%, Gold +1.5%
The NZD against the major cross rates 0.5715 EUR, 0.4900 GBP, 0.7630 AUD and 60.70 JPY.
Today sees NZ Retail Sales at 10.45am.
-------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.