The NZD/USD has extended its gains overnight to sit at 0.8390 this morning. A still fairly benign environment for risk appetite, post last week’s US payrolls data, is helping support the NZD. The NZD is also benefitting from the market scouting around for currencies that are underpinned by strong fundamentals as it shuns the USD, for now. Yesterday’s domestic data only confirmed that the NZD fits firmly in this category. Yesterday’s QSBO was strong, consistent with GDP growth running around a 4% annual pace. That said, it was no stronger than anticipated, with momentum in the NZ economy now widely recognised.
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