By Dan Bell
The NZD/USD pushed to an interbank high of 0.8193 but has come off overnight highs following the US Fed’s interest rate announcement and speech this morning.
The Fed made no change to their policy settings, reinforced rates will stay lower for an extended period, but confirmed the end of QE2 which disappointed some investors/traders looking for potential reference to QE3 and an excuse to sell US Dollars.
Global equity markets are back in negative territory with the European bourses down slightly and in the US the Dow Jones is currently trading down 0.66% while commodity prices have had a mixed night.
The vote of confidence for the Greek government went through yesterday but had little impact on market sentiment. The EUR/USD had already recovered from last weeks lows and opens around similar levels this morning at 1.4350.
The NZD is up against the major cross rates with NZD/AUD trading as high as 0.7710 overnight, NZD/EUR opens around 0.5670 while NZD/GBP has been as high as 0.5081- a few points off another new post float high! NZD/JPY traded to 65.70 but has come off these highs this morning.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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