By Dan Bell
The NZD/USD opens at 0.8180 this morning down from yesterday’s highs around 0.8260.
The key driver overnight has been the release of the minutes of the most recent U.S. central bank meeting which showed policymakers are less likely to add further monetary stimulus to the US economy - i.e. no QE3
Global stocks were down overnight with the S&P 500 shedding 0.4%. Commodities were also weaker with the CRB Index down 0.48%.
The RBA left rates on hold yesterday but opened the door to a rate cut if inflation continue to slow. All eyes will be on the next CPI reading from Australia which is scheduled for 24th April.
The NZD continues to firm against the AUD and opens at 0.7930 this morning after hitting a high of 0.7948 overnight.
The AUD/USD is trading in the low 1.03’s while the EUR/USD is down a cent to 1.323 this morning as the US Dollar strengthens across the board.
Against the other major cross rates we open at 0.6186 EUR, 0.5140 GBP, 67.80 JPY.
Fonterra Milk Auction result overnight saw prices up 1.5% - the first rise in 2 months.
Not much to report on the local front today. From Australia we get Trade Balance numbers at 1:30 NZT.
Tonight the ECB announce monetary policy and from the US ADP Employment Change and ISM Non Manufacturing PMI will be of interest.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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