The NZD/USD opens around 0.8220 after trading to interbank lows around the 0.82 level following the US FOMC announcement earlier this morning.
There wasn’t too much to surprise the market from the Fed this morning although they dropped their previous observation about a recent tightening in financial conditions which has increased the odds they start tapering in December instead of next year, which has supported the US Dollar against most major currencies.
The NZD opens at current indicative mid rates: 0.8682 AUD, 0.5989 GBP, 0.5134 EUR, 81.05 JPY, and 0.8622 CAD.
US stocks are weaker overnight with the S&P 500 currently down 0.43%. Oil is down 1.54% and gold is off 0.22%.
The focus this morning is on the RBNZ at 9am. The market is expecting them to be more dovish in response to the recent strength in the NZD. A hawkish statement today would see the NZD take off!
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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