The NZD/USD opens around 0.8210 this morning after trading a tight 40 point range overnight.
US stocks are a bit weaker overnight with the S&P 500 down 0.48%. Commodities are weaker across the board with oil down 2.32% and gold down 1.1%.
Sentiment turned negative after comments from a Federal Reserve official suggested the central bank could begin reducing its monetary support of the economy as early as December.
Dennis Lockhart, a nonvoting member of the Federal Open Market Committee, the Fed's policy-setting group, said in an interview that the Fed could reduce the pace of its $85-billion-a-month bond-buying program in December.
The NZD is at current interbank mid rates: 0.8835 AUD, 0.6115 EUR, 0.5164 GBP, 81.77JPY and 0.8618 CAD.
The focus in NZ today will be on the RBNZ Financial Stability Report at 9am and Gov Wheeler’s testimony to parliament at 1pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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