NZD hits 7yr low against AUD
New Zealand: NZD/USD Past 5 days
International: EUR/USD Past 5 days
Today's commentary
The NZD stuck to a narrow range ahead of a US holiday, but managed to sink to a new seven-year low against the AUD.
The AUD recovered against the US currency on Friday, supported by a bullish outlook for the country's commodity exports, with the prospect of higher interest rates also driving it to a week high against the euro.
The EUR hit a one-week lows versus the dollar on Friday, deflated after the European Central Bank signaled it wasn't planning another rate rise and as US jobs data did not deliver a big downside surprise.
The ECB, like several other central banks, has the twin difficulties of rising inflation and slowing growth, but Christensen said the euro might falter due to the growth scenario. Thursday's ECB increase widened the gap between Eurozone and US rates to 225 basis points, giving the Euro its biggest yield advantage over the dollar in its 9 1/2 years.
This week's focus will be the G8 summit and whether the leaders will send a message strong enough to reverse the course of record high oil prices and the dollar's overall slide.
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