The NZDUSD opens higher at 0.8550 this morning.
The RBNZ monetary policy announcement and related statement will be released at 9am. The market is expecting the Official Cash Rate (OCR) to be raised by 0.25% to 3.25%. Most focus will be on the accompanying statement for any indication on the likely pace and extent of future rate hikes, as the RBNZ attempts to balance the need to keep inflation in check with the high NZD.
The NZD and AUD continue to be sought after due to their high relative yields.
The USD edged lower overnight, while the EUR remains pressured after last week's European Central Bank interest rate cut.
Global equity markets were lower on the day - Dow -0.6%, Nikkei +0.5%, Shanghai -0.0%, FTSE -0.5%, DAX -0.8%
Gold prices are steady at USD$1260. Oil prices increased by 0.5%.
The current indicative mid-rates are:
NZDUSD 0.8550
NZDEUR 0.6320
NZDGBP 0.5095
NZDJPY 87.25
NZDAUD 0.9115
NZDCAD 0.9295
RBNZ interest rate decision and related statement will be released at 9am.
Australian Employment figures will hit the tapes at 1:30pm, followed by US Retail Sales & Weekly Unemployment Claims tonight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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