By Dan Bell
The NZD/USD opens at 0.8360 this morning after a quiet overnight session.
The NZD traded in a narrow range with little to inspire the markets.
The German Central Bank expects Germany’s current economic slump to be short-lived, while the US is focused on the Presidential inauguration and the Martin Luther King Day holiday.
The Bank of Japan monetary policy meeting ends today. They are expected to announce an open-ended commitment to buy assets and double its inflation target to 2%.
There has been NZD/JPY selling overnight ahead of the BoJ announcement to lock in the currency pairs recent very sharp gains.
World equity markets were general higher on the day, with the European shares inching towards 2-year highs.
Gold prices climbed 0.3% to USD$1689. Copper and other base metals prices were generally weaker.
The NZD opens at 0.8360 USD, 0.7950 AUD, 0.6280 EUR, 0.5280 GBP, & 75.00 JPY.
There is no data scheduled on the domestic calendar today. The Bank of Japan stimulus and inflation target decision will take centre stage.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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