The NZDUSD opens at 0.6620 (mid-rate) this morning.
Many traders were caught off guard this morning after a news agency released the FOMC minutes 15mins ahead of its scheduled 6:00am announcement.
The minutes themselves have been interpreted as less hawkish than economists had hoped for, with the general feeling that current conditions do not justify a rate hike at this present time. Below are some of the key bullet points.
- Most Fed officials in July saw conditions for liftoff “not yet achieved” but, “approaching that point”
- Officials generally agreed additional information needed before raising rates
- Many officials saw some downside risks arising from economic financial developments abroad
- Most officials saw room for some additional progress reducing labour market slack.
In other news the U.S. Consumer Price Index failed to meet economists estimates of a 0.2% increase, edging up 0.1% in July, after rising 0.3% in June and 0.4% in May.
Overnight we hear from San Francisco Fed President Williams, with the market hoping for some commentary on last week’s surprise move by the PBOC to lower its currency.
Global equity markets are sharply lower - Dow -0.94%, S&P 500 -0.80%, FTSE -1.88%, DAX -2.14%, CAC -1.75%, Nikkei -1.61%, Shanghai +1.23%.
Gold prices have rallied 12$ trading at $1129 an ounce, WTI Crude Oil has plunged 4.6% to levels last seen in 2009, trading just above $40 a barrel at $40.55
NZDUSD 0.6620 0.5%
NZDEUR 0.5945 -0.5%
NZDGBP 0.4210 0.1%
NZDJPY 81.79 -0.2%
NZDAUD 0.8980 0.1%
NZDCAD 0.8655 0.6%
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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