fxmatters

There have been some atypical movements in currency markets in the last week or so but at the end of the day the global recovery story continues, share prices are still pushing higher and the central banks around the world are loathe to act, suggesting the current upward NZD/USD momentum is not over yet.

There have been murmurs of disquiet with a low USD, and hence high EUR and JPY as well as high NZD, but there appears no concrete action imminent.

Meanwhile stronger NZ economic statistics – including probably business confidence released Wednesday – and talk of a near-term RBA tightening suggest the local currencies remain to the fore of any rally against a weak USD.