The NZDUSD opens at 0.8675 this morning.
The NZD has been confined to a relative tight range the past 24 hours.
The markets are growing nervous due to Iraq's growing internal conflict and in response to Russia cutting off gas supplies to Ukrainian a dispute over unpaid bills - something which could disrupt supplies to the rest of Europe.
The USD fell slightly, while the JPY & CHF benefited from a 'safe haven' bid.
The US Fed meets on Thursday morning (NZ time). They may give clues on when they expect to begin raising interest rates - currently anticipated for 12-months time.
The GBP increased in value as expectations the Bank of England will begin to raise interest rates before year end.
Reserve Bank of Australia Assistant Governor said the AUD is too high given falls in price of the country's major exports, and that he would not be surprised to see it fall. However, he could not say when this fall would happen.
Global equity markets were mixed on the day - Dow +0.0%, Nikkei -1.1%, Shanghai +0.7%, FTSE -0.3%, DAX -0.3%
Gold prices fell to USD$1272. Oil prices jumped 0.4% on the Iraqi turmoil.
The current indicative mid-rates are:
NZDUSD 0.8675
NZDEUR 0.6390
NZDGBP 0.5110
NZDJPY 88.35
NZDAUD 0.9230
NZDCAD 0.9405
There is no data scheduled on the domestic calendar today.
The Reserve Bank of Australia Monetary Policy Meeting Minutes & New Motor Vehicle Sales hit the wires at 1:30pm.
German Economic Sentiment, US Building Permits & Inflation figures will be released 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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