FXstreet.com (London) - Dollar pulled back today as investors regained their appetite for risk. Stockmarkets rose as investor confidence was buoyed by a narrowing trade deficit in the US, and further positive news on the jobs domain.
In the last few sessions, information flow seems to be pointing towards an improved picture for global economic growth. Citigroup have announced they will be repaying TARP funds, and Manufacturing Output grew for the fourth month in a row in the US.
Across the continent early this week, NZD found strength, when Bollock, governor of the Central Bank, spoke more hawkishly than expected.
Gold bumped up today, after experiencing a series of corrections this week. As we reported yesterday, while sentiment may deflect riskier alternative asset classes, the stories for upside in gold still exist, and the bounce in New York session today reflected this as investor bought the dip, seeing gold as too cheap.
Later in Asian session a succession of Chinese data is due to be released, which will give a clearer picture on the growth of one of the key players in the global economy.
In early Asian trading NZD/USD remained neutral in the first 15 minutes of trading at 0.7279, down just 2 pips from the open.
Gold continued its bullish run from the end of the US session, quoting at 135.60 up nearly $3 from the open of 132.89.