The NZD has been the strongest performing currency over the past 24 hours, as optimism over a resolution to the US fiscal impasse buoys ‘risk-sensitive’ assets everywhere. From 0.8380 this time yesterday, the NZD/USD has climbed to fresh 5-month highs around 0.8435.We’ve heard it all before of course, but it looks as if, this time, US Congress will shortly pass a bill to reopen the government and raise the debt ceiling until 7 February. This has spurred the expected relief rally across equity markets, commodities, and the ‘risk-sensitive’ currencies like the NZD and AUD.
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