The NZDUSD opens lower at 0.7800 this morning, after some post US Fed meeting minutes release volatility.
The NZDUSD nudged up towards 0.7880 level overnight before dropping to 0.7795 prior to the Fed meeting minutes hitting the tapes.
The NZD then surged back to briefly touch 0.7858 region, only to rapidly fall to 0.7785. The equity markets and gold prices displayed similar volatility.
The Fed minutes indicated that many officials wanted more reassurance the employment recovery was on solid ground before beginning to slow the pace of asset purchases.
The markets had previously understood there was a general consensus amongst Fed officials about the likely need to start tapering economic stimulus measures soon. This uncertainty has resulted in whippy, volatile markets.
The US Fed Chairman will be conducting a Q&A session this morning. He may provide more clarity of the Fed’s likely course and timing of policy action – expect volatility to continue!
Global equity markets ended the day little changed.
The Gold Price rose slightly to USD$1252 an ounce. Oil jumped 2.5% while base metals prices closed a little higher.
The NZD opens at 0.7800 USD, 0.8550 AUD, 0.6050 EUR, 0.5230GBP, & 78.15 JPY.
Business NZ Manufacturing Index & Food Price Index hit the tapes this morning – not expected to have a significant market impact.
Australian Employment figure lottery will be released at 1:30pm today. These numbers have been rather erratic in recent months.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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