NZDUSD starts the day around 0.8640, having remained tightly range bound overnight.
The European Central Bank left benchmark rates unchanged, while pointing to current EUR strength as a cause for serious concern. All signs currently point to a rate cut in June. EURUSD posted new two year highs just shy of 1.4000 before collapsing to 1.3850 after the announcement.
The Bank of England also met last night, causing fewer fireworks as they left rates and the size of their asset purchasing programme unchanged.
Not to be outdone on the central bank front, Fed Chairwoman Yellen reiterated the need to see continued labour market improvement before QE can end in the northern hemisphere Autumn.
US stocks are modestly higher on the day, buoyed by lower initial jobless claims data overnight.
Chinese CPI is released this afternoon, and should be the main driver in our timezone.
Current indicative mid rates:
NZDUSD 0.8640
NZDEUR 0.6245
NZDGBP 0.5105
NZDJPY 87.80
NZDAUD 0.9220
NZDCAD 0.9360
----------------------------------------------------------
To subscribe to our free daily Currency Rate Sheet and News email, enter your email address here.
----------------------------------------------------------
Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.