The NZDUSD opens at 0.7485 (mid-rate) this morning.
The USD has dropped sharply against all its major trading partners following this morning’s FOMC Statement, Gold and US equities screamed higher.
Although as many economists had predicted the Fed removed the word patient from this morning’s announcement they went on to state that they would need to see further improvement in the labour market as well as being reasonably confident that inflation will move back to the 2% target before raising interest rates. Yellen went on to state that a rate hike (data dependent) is possible anytime after April.
Global equity markets are higher - Dow +1.18%, Nikkei +0.55%, Shanghai +2.13%, FTSE +1.57% DAX -0.48%, CAC +0.09%
Gold prices are currently trading at $1168, Oil (WTI) plunged is trading just above $42.00 a barrel
The current indicative mid-rates are:
NZDUSD 0.7485
NZDEUR 0.6937
NZDGBP 0.5025
NZDJPY 90.16
NZDAUD 0.9647
NZDCAD 0.9425
Domestic data releases today:
10:45 – GDP q/q
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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