The NZDUSD opens higher at 0.8015 this morning.
The USD slipped lower on growing expectations the US Fed will announce it is cutting USD$10 to USD$20 billion from its monthly bond-buying program on 18th September. This boosted the NZD.
The NZD also benefited from Chinese government data that showed the world’s second largest economy grew more than expected in August.
President Obama appears to be struggling to get Congress to support US military action against Syria, while Russia proposed Syria should save itself by handing over any chemical weapons.
Tokyo was awarded the 2020 Olympics over the weekend. The JPY weaken and Japanese stocks rallied in response. The NZDJPY climbed to 6-week highs of 80.00.
Global equity markets were mostly notably higher on the day – Dow +0.9%, Nikkei +2.5%, Shanghai +3.5%, FTSE -0.3%, DAX +0.0%
The Gold Price was dropped 0.4% to USD$1385 an ounce. Oil prices fell 2.6% and base metal prices were generally lower on the day.
The NZD opens at 0.8015 USD, 0.8685 AUD, 0.6050 EUR, 0.5105 GBP, & 79.80 JPY.
There is no data on the domestic calendar today.
Inflation Expectation & NAB Business Confidence data hits the tapes from Australia at 1.30pm, and Chinese Fixed Asset Investment, Industrial Production, & Retail Sales will be released at 5.30pm
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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