The NZDUSD opens at 0.7735 this morning.
The US Fed will raise interest rates next year, although they will be patient in doing so.
They have stated rate hikes are unlikely to be before April and gave an upbeat assessment of state of the US economy. The USD eventually strengthened, pulling the NZDUSD to a low of 0.7684.
NZ Q3 GDP, released yesterday, came in at 1.0%, exceeding 0.7% expected. However, the year-on-year figure was reduced to 3.2% from 3.9%. Growth in primary industries, especially agriculture and mining, were the main drivers.
Global equity markets were substantially higher on the day – Dow +1.7%, Nikkei +2.3%, Shanghai -0.4%, FTSE+2.0%, DAX +2.8%
Gold prices rose to USD$1,195. Oil prices fell by 0.3% on the day.
The current indicative mid-rates are:
NZDUSD 0.7735
NZDEUR 0.6300
NZDGBP 0.4940
NZDJPY 91.95
NZDAUD 0.9290
NZDCAD 0.8975
ANZ Business Confidence figures will be released at 1:00pm.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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