The New Zealand dollar will probably test US78c this week as the currency rides the wave of stronger prices for raw materials.

The New Zealand dollar faces pressure in its first full week of trading in 2011 as support for the greenback is bolstered by upbeat US data and renewed fears about European debt.

The Australian stock market ended the day yesterday on a high, as resource and financial stocks both rallied.

I worry that the banks are trying to unleash those animal spirits in the housing markets again.