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Forex pairs in this Article » NZD/USD (Barcelona) - According to the Research Team at BNZ, "Predictably enough, the financial market reaction to the reaction by central banks in September was euphoric, which clearly benefitted risk assets, such as the NZD. As such, The NZD outperformed, reflecting buoyant global risk sentiment and solid domestic fundamentals."

In addition, the MSCI World Equity Index climbed a further 2.5% over the month, to be up 11% for the year. Global bond yields edged higher, while peripheral European sovereign bond spreads narrowed sharply, from their previously worrisome highs. Our own risk appetite index pushed above 75% - the highest since January 2011.

"This risk-friendly global backdrop, combined with the USD-negative policies of the Fed, paved the way for more strength in growth-sensitive currencies like the NZDUSD. In fact, the NZD was the strongest performing G10 currency over the month." the Team adds.
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