Ilya Spivak, Currency Analyst at DailyFX, comments:
“An uneventful data docket in European trading hours is likely to see traders looking ahead to February’s US Durable Goods Orders report. Expectations point to a 0.8 percent increase, which would amount to the largest increase in three months. A supportive outcome is likely to further erode doubts about continued “tapering” of Fed QE asset purchases in the months ahead, bolstering the US Dollar.
“The New Zealand Dollar narrowly outperformed in otherwise quiet overnight trade. The move tracked a rally on Asian stock exchanges, hinting the currency was able to leverage its supportive monetary policy outlook to capture a broader swell in risk appetite.
“The MSCI Asia Pacific regional benchmark equities index rose 0.6 percent on chipper overseas demand bets after the US Consumer Confidence index unexpectedly printed at a six-year high. The RBNZ is seen hiking interest rates by 120 basis points over the coming 12 months according to a measure of priced-in expectations tracked by Credit Suisse, making the most attractive profile for yield-seeking investors in the G10 FX space.”