The NZD opens around 0.8295 this morning after trading between 0.8274 and 0.8319 overnight.
US Fed minutes from their most recent meeting showed that tapering is still on the cards this year and that QE will be removed by mid 2014 which gave the US Dollar a slight boost.
US equity markets have had a quiet session with the S&P 500 up 0.29%. Commodity prices are mostly weaker with Oil down 2% and gold off 1.31%.
US President Obama announced that Federal Reserve Vice Chairwoman Janet Yellen will become the central bank's new leader, replacing Ben Bernanke. Yellen is considered a dovish policy maker who will continue to support the US economy which is positive for risk appetite.
The NZD opens at current indicative mid rates: 0.8784 AUD, 0.6138 EUR, 0.52 GBP, 80.80 JPY, 0.8620 CAD.
US fiscal concerns remain an ongoing concern as we enter the 9th day of partial government shut down. Unless Congress reaches agreement to raise the debt ceiling, the US will hit its borrowing limit of $16.7 trillion on or around October 17 which could have a significant impact on risk sentiment.
On the local front we get NZ Manufacturing Index at 10:30am. From Australia we get Employment data at 1:30pm which is expected to show an increase of 15K jobs and unemployment at 5.8%.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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