The NZD/USD has benefitted from a general improvementin risk appetite, and more specifically from a soft USD onFriday night. It ended the week close to 0.8300. Generally, risk appetite has begun to return to markets asemerging market ructions have moved out of the spotlight,as e.m. currencies have stabilised. Our risk appetite index(scale 0-100%) that bottomed at 39% last week, now sits at59%. This has helped appetite for ‘risk sensitive’ currenciessuch as the NZD return, at the expense of currencies suchas the JPY. The NZD/JPY has rebounded from below82.00 to almost 84.90 in recent trading sessions.
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