Philip Salter
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THE Kiwi dollar has gone up against the US dollar to its highest since the beginning of the month, after building permits had its biggest jump since 2008 and Chinese manufacturing increased. This data shows traders are hungry for riskier assets at the moment, which could see the Kiwi push higher short-term. Capital Spreads quotes New Zealand dollar-dollar at $0.8485-$0.8489.

Last week’s anticipated speech by Ben Bernanke disappointed those looking for an expansion of QE. Market focus now returns back to European fiscal troubles. Risk-tolerance is buoyant, helping stocks record strong gains in early trading this week. If there isn’t further deterioration, we should see commodity currencies continue to retrace their early August losses against the dollar, Swiss franc and yen. On Australian dollar-Swiss franc Alpari quotes SFr0.8714-SFr0.8716.

Euro-dollar is the focus of many investors today, as the important German unemployment figures are released. The pair broke below its support level on Tuesday and remains under pressure, with the relative strength index (RSI) being badly directed. Let’s just see if the moderate improvement in German Labour figures covers the on-going periphery problems. Capital Spreads quotes $1.44145-$1.44155.

Dollar-yen seems to be finding some support around the ¥76.00 level and the recent strength in equity markets has not been complimented by the usual dollar weakness one would expect. This could be a sign that the dollar sell off is a thing of the past and renewed strength might be around the corner. Capital Spreads quotes ¥76.86-¥76.87.