The NZDUSD opens at 0.8275 this morning.
The NZDUSD has been on a roller coaster ride the past 24 hours. It begun at 0.8240, had an aggressive run to 0.8350 (despite disappointing Q3 retail sales figures), fell rapidly from whence it came, only to climb back to the 0.8275 level.
Janet Yellen, nominee for Federal Reserve chairman, made it clear yesterday that the Fed’s ultra-easy monetary policy would continue until they were confident the economic recovery was sustainable. The Fed’s massive USD$85 billion per month bond-buying program will continue full-force, with any future tapering dependant upon the strength on economic data.
The above comments were greeted favourably by both the bond and equity markets, and the NZD.
Global equity markets all rose on the day – Dow +0.3%, Nikkei +2.2%, Shanghai +0.7%, FTSE +0.5%, DAX +1.1%
The Gold Price gained 1.1% to USD$1286 an ounce. Oil increased 1.4% and base metal prices were mixed on the day.
The NZD opens at 0.8275 USD, 0.8885 AUD, 0.8680 CAD, 0.6155 EUR, 0.5155 GBP, & 82.85 JPY.
There is no data on the domestic calendar today.
Euro-zone inflation figures and several US manufacturing & production numbers will be released tonight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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