The NZDUSD opens higher at 0.8240 this morning.
The NZD hit a fresh 4-month high overnight as the USD struggled ahead of the eagerly anticipated US FOMC interest rate decision - they are expected to announce a modest tapering to their massive USD$85 billion per month bond buying program tomorrow morning. This event will be the markets major focus of the next 24 hours.
The EUR moved higher on upbeat German economic sentiment survey which rose to its highest level in nearly 3 ½ years.
Fonterra’s dairy price index rose 0.3% during last nights auction, although the volume purchased fell.
Global equity markets were mixed on the day – Dow +0.2%, Nikkei +0.7%, Shanghai -2.0%, FTSE -0.8%, DAX -0.2%
The Gold Price was steady at USD$1309 an ounce. Oil plunged 2.1% and base metal prices were lower on the day.
The NZD opens at 0.8240 USD, 0.8805 AUD, 0.8480 CAD, 0.6165 EUR, 0.5175 GBP, & 81.60 JPY.
NZ Current Account Balance will be released at 10:45am today.
Melbourne Institute Leading Index hit the tapes at 12:30pm, followed by a speech from RBA Assistant Governor Edey at 1:30pm.
The US FOMC interest rate decision and possible bond-buying tapering announcement hit the tapes at 6am tomorrow morning. This has the potential to have a significant impact on the markets and NZD.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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