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MONDAY 1ST FEBRUARY 2011
Ranges
NZD/USD: 7523/7797
AUD/USD: 9805/1.0076
NZD/AUD: 7679/7827
Last week
TheRBNZ statement surprised the market last week with a slightly less dovish statement than expected, this saw Kiwi take off immediately and since has sustained its gains.
The data out of the US continued to improve last week, marginally so this also helped kiwi rally as risk was put back on the table.
The troubles in Egypt has reinforced the safe haven aspect of the the big Dollar, along with this the FOMC was unchanged but they look set to take anymore QE2 easing off the table going forward.
Weaker CPI data out of Aussie saw a rally in the NZD/AUD but it still remains within the current trading band
This week
Further unease in the middle east will keep the USD strong as the world once again flocks to the safe haven of the big buck... not sure how safe it is any longer.
Wiuth food shortages in the forefront of teh news it looks like a double banger for teh NZD as floews here downunder have increased since last week and with the rbnz being alittle more hawkish than previously expected, however as we all know sentiment changes pretty quickely and kiwi should remain in teh current trading band.
Update
Still awaiting final sign off from the different legal teams. |
