- NZD/USD is currently trading at 0.7203 in the close of Wall Street in what has been a positive risk tone in markets mid-week.
- Bulls backing the bid as global data and NZ jobs numbers impress.
At the time of writing, the price is up 0.18% having travelled between a range of 0.7183 and 0.7225.
The price was bid up on the back of not only US and EU strong economic/political fundamentals, driving risk appetite higher, but also domestically.
In the European hours, we saw positive news in that former head of the European Central Bank President, Mario Draghi, has accepted a mandate to try and form a new government in Italy.
We also got the Consumer Price Index data for the eurozone coming in better which raised hopes of a global economic recovery when the US data came in all in all stronger than expected as well.
With a bid equities market and bond yields edging higher, as a result, the kiwi was able to extend gains on yesterday’s jobs data.
”New Zealand labour market data out yesterday painted a picture of remarkable resilience, with the economy potentially maintaining recent momentum into Q4,” analysts at ANZ Bank explained. ‘
‘An unemployment rate of 4.9% puts the Reserve Bank of New Zealand’s targets even more clearly in its sights, and adds to a string of recent positive news that suggests the RBNZ can simply be patient. We now expect no more OCR cuts this cycle.”
”Markets had largely already shunned the idea of cuts, but even so, the data were a huge surprise. NZ interest rates have (and will likely continue to) remain elevated compared to their AU and US equivalents, with our OCR higher than AU and US traded cash rates, and as markets assume the RBNZ one of the earlier “hikers”.”
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