July 5, 2011
Wouldn’t it be nice to just sit back and chill out? Well, that’s exactly what the Kiwi did yesterday! With no data scheduled for release, NZD/USD traded within a range tighter than Big Pippin’s pants! The pair traded within a range of just 18 pips, closing 11 pips higher at .8293.
Earlier today, the NZIER business confidence index was released. It appears that businessmen have become more optimistic about the economy, as the index printed at 27, a complete reversal from last quarter’s release of -27. And why wouldn’t they? The economy seems to be picking up, and with commodities still on the rise, it should remain steady for the rest of the year.
No biggies for the rest of the day, but do watch out for the RBA rate decision, which may prove to be a catalyst for a big move in the markets. Take note that whenever we see a strong move in the Aussie, we sometimes see a similar, although subtler, move in the Kiwi.
"The only cable I watch is the pound baby."