Commentary

On the anniversary of the March 09' bottom in the equity markets the bulls took control.Equity markets in the US surged to highs in celebration and look set to take out year long highs.Fitch warned on the GBP and this translated to a dip on the currency dropping below 1.5000 again.Greek PM met with Mr Obama today, no doubt discussing their issues and looking to receive support and protection from perceived specultors.The speculators are short for a very good reason and the markets are more believable than the politicians especially with there new magician, Goldmans, making debt dissappear.This failed to inspire buying of the EURO trading around 1.3600.China continues to advocate US treasury bonds as a FX reserve but noticably have reduced purchases recently.Risk appetite rises with confidence and the attractive high returns from the AUD attract flows as the AUD trades up to 0.9150.KIWI consolidates over the 0.7200 and will remain there until the equity markets reverse this upward move.

Headlines

9/3 Market Anniversay of March lows,3 Year Treasury Auctions

10/3 NZ Overseas Trade Indexes, US Weekly Mortgage Applications,Wholesale Trade,State Unemployment,10 Treasury Auction

11/3 RBNZ Monetary policy statement, Aust Labour Force, US International Trade,Weekly Jobless Claims,30 Year Treasury Auctions

12/3 NZ Retail sales,US Retail Sales,Consumer Sentiment,Business Inventories