By Dan Bell
The NZD/USD opens around 0.8160/0.8175 this morning as the market positions itself for further monetary policy stimulus from the US Central Bank.
Stocks were up across the board, although the US session was a bit weaker after credit rating agency Moody’s said it might have to cut its AAA rating on US government debt.
The USD is weaker against most major currencies with the EUR/USD trading to a high of 1.2854 and the AUD/USD over 1.04. The Fed begin their 2 day meeting tomorrow and announce their decision at 4:30am Friday morning NZT.
Risk sentiment also received a boost on expectations the German constitutional court will approve the euro zone bailout fund this evening.
The NZD is holding up against the major cross rates and opens at 0.7820 AUD, 0.6355 EUR, 0.5080 GBP and 63.50 JPY.
Not much to report on the local front today, the focus will be on the German constitutional court ruling this evening (approx 8pm NZT) and the Dutch parliamentary election overnight. Tomorrow morning we get the Reserve Bank of NZ announcement at 9am.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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