TheThe NZDUSD opens lower at 0.8285 this morning.
The markets were relatively quiet overnight ahead of the US Federal Reserves January interest rate policy setting meeting minutes, which have just been released.
The key points mentioned were:
- Several officials wanted 'clear presumption' in favour of USD$10 billion cuts to bond buying program at each meeting
- Some officials said QE tapering plan should be adjusted if economy substantially deviated from expectations
- Agreed it would soon be appropriate to change forward guidance on first rate rise
- Some participants raised the possibility of rate risk relatively soon
- Recent events in emerging markets, if continued, could pose downside risks
- Market expectations for QE, rate rise well aligned with Fed view
- Some participants wanted statement on goals to explicitly say below-target inflation is undesirable as above-target inflation.
The NZDUSD, which was trading a shade above 0.8300 immediately before this 8am release, fell in response as the USD strengthened across the board.
In other news, USD housing data disappointed (weather affected?), and UK unemployment rate rose 0.1% to 7.2%
The Chinese HSBC Flash Manufacturing PMI (Purchasing Managers Index), an influential statistic on the strength of the Chinese manufacturing, will hit the tapes at 2:45pm.
Global equity markets were mixed on the day - Dow +0.0%, Nikkei -0.5%, Shanghai +1.2%, FTSE +0.0%, DAX +0.0%
Gold prices fell 0.5% to USD$1317. Oil prices rose a little.
The NZD opens at 0.8285 USD, 0.9195 AUD, 0.9170 CAD, 0.6030 EUR, 0.4965 GBP, & 84.80 JPY.
NZ PPI (Producer Price Index) figures will hit the tapes at 10:45am today.
Chinese Manufacturing numbers will be released at 2:45pm, followed by European & USD Manufacturing data, and USD Inflation figures overnight.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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