Asian markets rallied and the US dollar rose further, after hitting a four-year high on US new home sales data improving sharply for the world's largest economy. The price of gold fell by 0,2%, as did the Zealand dollar which contracted by 0,8% after statements by the Kiwi central bank according to which the down-under country's currency is overvalued.
The US was to reveal durable goods and unemployment data today after reporting that new home sales grew the fastest in more than six years in August. Among other important news, Chinese President Xi Jinping is considering replacing the governor of the People's Bank of China Zhou Xiaochuan, according to rumors by the Wall Street Journal.
“The US dollar has kicked off,” comments Imre Speizer, markets strategist at Westpac Banking in Auckland. “Momentum is very strong in the short term. And the economic data continues to surprise more positively than negatively. The greenback strengthened against 11 of the 16 major currencies.
The Nikkei 225 Stock Average rose 1,2%, while Australia's S&P/ASX 200 recovered 0,1 percent. South Korean Kospi showed no major changes. In Chinese squares, the Hang Seng slipped for the third time in four days. The Hang Seng China Enterprises of mainland Chinese companies listed in Hong Kong fluctuated between -0,5% and +0,7% during the day. The Shanghai Composite rose 0,3 percent.
