The S&P 500 hits a new highs for 2016 and currencies against the Greenback, especially the commodity based currencies reached new highs. We saw the NZD/USD smash through resistance at 0.6900 and had an intraday high at 0.6966. The AUD/USD broke above 0.77c reaching a high of 0.7708 before closing below the 77c handle.
Overnight we saw the ADP Employment change which showed a better than expected increase in the number of private sector jobs of 200,000 where analysts were expecting a figure of 195,000. The ADP employment is considered as a forerunner to the US non-farm payrolls where we could expect volatility around the announcement.
The EIA report showed that there was a decline in official US stock pile data from the previous week. Oil stockpile increased by 2.3 million barrels lower than forecasted of 2.8 million barrels. The report also included a drop in oil held at Cushing as well as less production of gasoline and distillates. German CPI rose more-than-expected last month seasonally adjusted 0.8%, from 0.4% in the preceding month. Analysts had expected German CPI to rise 0.6% last month.
The chart below is the NZD/USD daily chart showing the kiwi breaking through the 69c handle. The kiwi has been the best performer against the greenback amongst the major currencies.