The Kiwi rose higher against the US Dollar overnight as risk aversion pulled back. US equity markets rallied, with the Dow Jones Industrial Average earning 1.6%. That renewed the chance for a Santa Claus rally heading into the New Year.
Traders are wary about the Omicron variant, but President Biden lessened concerns over possible new restrictions to battle the new variant saying people are safe to celebrate the holidays given they received their booster shoot. Certainly…, evidence is starting to show that a booster required to provide robust protection against Omicron.
This morning, New Zealand’s ANZ Bank released its December consumer confidence survey results, with the index showing an increase to 98.3 from 96.6 in November. That is a 1.8% increase on a month-over-month basis.
The survey showed no change for inflation expectations, but prospects on house prices fell to 5.3% from 5.9%. Overall, the data is a positive sign for the Kiwi economy, but the Omicron variant represents a big question mark for a country that has so far taken a strict approach over Covid restrictions.
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