The NZDUSD opens lower at 0.7985 this morning.
The NZD was dragged down yesterday afternoon after the AUDUSD was smashed lower - Australian building approvals were bad, followed by Reserve Bank of Australia Governor Stevens suggested there are more rate cuts to come and the AUD can fall further. This resulted in heavy AUD selling, which spilled over to the NZD.
The NZDUSD traded as low as 0.7960, while the NZDAUD touched 0.8815 – a level last seen in November 2008!
Fonterra just announced an increased 2013/14 payout forecast of NZD$7.82 per kg of milk solids.
The markets are now firmly focused on tomorrow mornings US Federal Reserve interest rate (FOMC) meeting and related statement. Particular emphasis will be placed on any indication of when the Fed is likely to reduce its massive USD$85 billion bond buying program. Less US stimulus could push interest rates higher, making the USD more attractive.
US non-farm payrolls will provide the follow up act to the FOMC Friday night.
Global equity markets closed in positive territory, with Japan’s Nikkei the standout gaining 1.5%.
The Gold Price fell a little to USD$1326 an ounce. Oil dropped over 1% while base metals prices were lower across the board..
The NZD opens at 0.7985 USD, 0.8810 AUD, 0.6020 EUR, 0.5240GBP, & 78.25 JPY.
ANZ Business Confidence will be released at 1:00pm today
US GDP figures hit the tapes tonight, followed by the highly anticipated US Federal Reserve interest rate (FOMC) meeting and related statement at 6am tomorrow morning.
-------------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.