The NZDUSD opens at 0.6690 (mid-rate) this morning.
The FOMC have left rates unchanged at 0.25% to 0.5%. The key points were:
- Prior to this announcement the forward market was pricing in four rate hikes, this has been pared back to two
- patchy growth in the U.S. and a slow down in China reduced chances for a rate hike
- most Fed officials now expect to raise by 0.5% this year
- They are now looking at the global picture, and less domestically, and have flagged up risks to U.S. Outlook from global financial and economic developments
The NZD is 90 points higher immediately after the announcement.
Crude oil futures rose Wednesday as OPEC members planned a formal meeting with Russia to discuss capping production in April. Saudi Arabia is on board with the plan.
NZ GDP at 10:45am should be another market mover with a 0.7% increase q/q.
Global equity markets are mixed: Dow -0.15%, S&P 500 -0.19%, FTSE +0.58%, DAX +0.50%, CAC -0.22%, Nikkei -0.83%, Shanghai +0.21%.
Gold prices are steady at $1229 an ounce, WTI Crude Oil slips further currently down 4.0% at $37.83 a barrel.
Current indicative rates:
NZDUSD 0.6690 1.3%
NZDEUR 0.5979 0.6%
NZDGBP 0.4700 0.9%
NZDJPY 75.44 1.0%
NZDAUD 0.8895 0.4%
NZDCAD 0.8811 -0.2%
Upcoming data releases
- 10:45 - NZ 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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