Asian equity markets cop a hiding with Japan's Nikkei index down over 7%; Chinese PMI slumps showing economy contracting

FOMC will begin to taper down QE if economy continues to recover

Offshore sentiment towards US bond yields and US dollar main drivers behind NZ$/US$ and A$/US$ movements

Profit taking on US$ positions and yesterdays PSI data helps send NZ$/US$ cross rate back above 0.8100

NZ$/US$ below 0.8100 for first time this year as tidal wave of NZ$ selling overwhelms local buyers

NZ in pretty good shape compared to many peers where severe austerity programmes exist; NZ sovereign rating affirmed by agencies (S&P, AA, Fitch, AA, Moody’s, Aaa)

Sixth consecutive Eurozone GDP contraction amid signs European (and particularly German) economies continue to struggle

Rating agencies confirm Australia's AAA status but A$ continues its slide against US$ following budget announcement

Key support for the NZ$/EUR cross rate now at 0.6300; Future direction of this pair will be depend on Eurozone data and commentary due tonight

US economy outperforming much of the developed world and market watchers contemplating Fed’s exit from QE policies