As risk appetite continues to recover in global markets the NZD/USD has crept higher. It sits at 0.8340 this morning. Domestically, it was another fairly low-key day yesterday. The main data release this week remains Thursday’s BNZ PMI. For now, the NZD continues to take its cue from offshore developments. Overnight global risk appetite continued to improved (Our risk appetite index has rebounded further to trade at 60%). The drivers appear to be two-fold. First, an absence of negative headlines from emerging markets and further rebound in key e.m. currencies. Second, the much anticipated, inaugural address by new Fed Chair Yellen failed to ruffle markets.
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