By Dan Bell
The NZD/USD opens around 0.8190 this morning after trading to a high of 0.8236 last night.
The German court cleared the way for the European bailout fund which gave sentiment a boost.
Global stocks saw modest gains with most European bourses up 0.2% and the US S&P 500 up 0.16%.
The USD is broadly weaker as the market awaits the FOMC (Federal Reserve) announcement at 4:30am tomorrow morning- followed by a press conference at 6:15am NZT.
The NZD is relatively unchanged against most major cross rates and opens at 0.7830 AUD 0.6350 EUR, 0.5090 GBP and 63.85 JPY.
The focus this morning is on the Reserve Bank of NZ’s rate and monetary policy announcement. This will be Dr Bollard’s last OCR/MPS and is not expected to be a game changer.
While he might mention the high NZD - talk is cheap when you have other central banks either cutting interest rates or printing money.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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