US Fed sets up for rate rises but timing still unclear; Sweden cuts rates; China house prices fall; UST 10yr rates fall; NZD jumps; NZ$1 = 74.3 USc, TWI = 79.4

Here's my summary of the key issues from overnight that affect New Zealand, with news of a 'less patient' US Federal Reserve.

A few minutes ago Janet Yellen left their official rates unchanged yet again, but she has signaled that the Fed wants to be "reasonably confident" on inflation before starting to lift rates.

She all but ruled out an April rise, but the door is open after that. However, she said much will depend on wage rise data. Accompanying forecasts show that they don't actually expect inflation to rise to 2% until 2017.

Immediately following the Fed statement the US dollar fell, but the markets gave a big push to the New Zealand dollar across the board. Benchmark bond yields in New York also fell.

Across the Atlantic, Sweden’s central bank cut its main interest rate further into negative territory and will increase bond buys. The move followed a similar cut last month.

In China, of 70 large and medium-sized cities surveyed, new home prices fell in 66 in February from the previous month, the biggest annual fall on record.

In Australia, an American firm co-founded by a former adviser to US Vice President Al Gore is at the centre of a bribery scandal involving two former executives with the Commonwealth Bank of Australia, one of whom is apparently a Kiwi. An ASB account was used to launder some of the funds.

The UST 10yr yields have fallen after the Fed statement to 2.02%.

The crude oil price is holding its very low levels at US$43/barrel and Brent crude fell below $53 a barrel on oversupply concerns as industry data indicated American crude stocks had hit a new record high.

The gold price is basically unchanged at US$1,151/oz although the Fed statement also too a toll here too immediately after the announcement

The New Zealand dollar starts today much firmer and is now at 74.3US¢, it is at 96.4 AU¢, and the TWI is at 79.4.

If you want to catch up with all the local changes yesterday, we have an update here.

The easiest place to stay up with event risk is by following our Economic Calendar here »