The NZDUSD opens sharply higher at 0.8215 this morning.
In a surprise move former Obama economic advisor Lawrence Summers has withdrawn his name from consideration to be the next US Federal Reserve Chairman.
The NZDUSD was at 0.8140 immediate before this story hit the tapes as USD weakened across the board. Summers cited a possible acrimonious confirmation process, which would not serve the interests of the Federal Reserve, the US administration, or ultimately the ongoing US economic recovery.
US Data (Retail Sales & Consumer Confidence) released Friday night disappointed. However, the market still expects the US Fed to announce a small tapering of it USD$85 billion monthly bond-buying program at its eagerly anticipated interest rate meeting to be held Thursday morning NZ time. This event will be the dominant influence this week.
Team NZ lost race 1 this morning by a considerable margin.
Global equity markets were mostly higher on the day – Dow +0.5%, Nikkei +0.1%, Shanghai -0.7%, FTSE -0.1%, DAX +0.2%
The Gold Price was steady at USD$1327 an ounce. Oil rose 0.2% and base metal prices were generally lower on the day.
The NZD opens at 0.8215 USD, 0.8805 AUD, 0.6150 EUR, 0.5155 GBP, & 81.15 JPY.
Westpac NZ Consumer Confidence figures will be released at 10am.
Euro-zone inflation, and US Capacity Utilisation & Industrial Production number will hit the tapes tonight.
-------------------------------------------------------------
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.