The NZDUSD opens higher at 0.8110 this morning, post the RBNZ OCR decision and statement.
Global risk sentiment remains positive, as evidenced by stronger equity markets, higher commodity currencies such as the NZDUSD, and a lower USD.
Expectations of a reduction in stimulus from the US Federal Reserve have been pared back somewhat, plus easing of tensions over Syria, combined to increase global risk tolerance.
The RBNZ Official Cash Rate was unchanged at 2.50% and that rates rises will likely be needed next year. NZD jumped higher in response.
Global equity markets were mostly higher on the day – Dow +0.7%, Nikkei +0.0%, Shanghai +0.3%, FTSE +0.1%, DAX +0.6%
The Gold Price was steady at USD$1364 an ounce. Oil rose 0.3% and base metal prices were mixed on the day.
The NZD opens at 0.8110 USD, 0.8695 AUD, 0.6095 EUR, 0.5130 GBP, & 81.05 JPY.
The RBNZ’s Governor Wheeler testifies before the Finance & Expenditure Select Committee at 1:10am.
Australian Employment Data hits the tapes at 1:30pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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