The NZDUSD opens at 0.7875 this morning.
The NZDUSD traded to a low of 0.7781 prior to the release of this morning’s dovish Federal Reserve Minutes. The minutes have shown that the Fed are concerned that weak overseas growth in Europe, China and Japan combined with the appreciating USD will hamper US exports.
A stronger USD will also reduce the cost of imported goods and services and potentially hold US inflation below the Fed’s 2% objective. With Fed staff also cutting their growth forecast both the DJ and S&P are sharply higher.
Global equity markets are mixed - Dow +1.14%, Nikkei -1.19%, Shanghai +0.80%, FTSE -0.21% DAX -1.00%, CAC -0.97%
Gold prices have continued to rise currently up $7 to $1216. Oil prices are down again currently trading at $87.51 (-1.51%)
The current indicative mid-rates are:
NZDUSD 0.7875
NZDEUR 0.6188
NZDGBP 0.4884
NZDJPY 85.26
NZDAUD 0.8942
NZDCAD 0.8769
There are no NZ data releases today out of Australia we have their Employment numbers hitting the tapes at 1:30
Overnight we have the UK cash rate announcement as well as an address from ECB President Draghi.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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