GOING UP DOWN UNDER
The latest round of exuberance, which continues to drive stock markets higher, was last week's U.S. jobs data for May.
An increase in employment caught markets completely by surprise and together with a smaller-than-expected fall in Chinese exports last month, have continued to propel the trade-sensitive Aussie and kiwi higher.
The kiwi is up 5.5% on the dollar this month and the Aussie 4.8%.
"Economies are smashed, but not smashed as badly as was expected, and I think that's the key to this whole rally," said Westpac FX analyst Imre Speizer in Auckland.
"The latest high-frequency data shows you that the recovery probably looking more like a V. It's a relief rally, relief that it's not as bad as feared."
In New Zealand, an ANZ survey of traffic movement - seen as a forward indicator of economic growth - saw a sharp rebound in heavy vehicle traffic last month.
The virus also appears to be in retreat in Australia where re-opening is gathering pace, prompting RBC Capital Markets to make a modest improvement in its 2020 GDP forecast on Monday lifting it to better than -4% from -4.5%.
The World Health Organization on Monday warned that the COVID-19 pandemic is "far from over," as a record number of new daily infections were reported.
But investors took comfort from cases trending lower in the United States and falling to a fresh low in New York, even as testing has ramped up.
"If we continue to trend lower ... this will go a long way in re-aligning consumer risk assessment about the virus," said RBC Capital Markets' Chief U.S. Economist, Tom Porcelli.
