The Kiwi climbed overnight as a small degree of confidence returned to global equity markets.
It wasn’t all sunshine and kittens for the Kiwi though as the local session saw it and AUD pulled back from the previous night’s gains. The biggest drop came when the Australian GDP figures were released showing a surprising contraction of 0.5% in Q4 2008 – the first drop in 8 years and considerably under the expected 0.2% rise. The AUD dropped a cent against the USD on the news (pulling the Kiwi lower) as investors wondered whether the RBA’s confidence had been misplaced, with pressure now being brought to bear for a large rate cut in April. Read Full Article »
