Here's my summary of the key events overnight that affect New Zealand, with news the Federal Reserve has kept interest rates unchanged, but has indicated a rise is still on the cards this year.
The US central bank has held back from making the first rate hike in nearly a decade, amid fears global instability could slow the economy.
It’s sitting tight as it’s concerned China’s economic turmoil and US stock-market volatility will put more downward pressure on inflation.
Policy makers aren’t convinced inflation will move back to their 2% target. This is despite continued gains in the labour market, with unemployment in August falling to 5.1% – its lowest level in more than seven years.
Yet the Fed’s indicated it still has its sights set on raising rates at either of its next reviews in October or December.
While its Open Market Committee voted 9-1 to hold its benchmark federal funds rate at 0 to 0.25%, it forecasts an interest rate of 0.40% by the end of the year.
According to the latest dot-plot, 13 of the 17 Fed officials think the bank will raise rates at least once before the end of the year.
The Fed’s announcement has sparked a flurry of activity in the currencies market.
The US dollar initially plunged over a cent against the New Zealand dollar, but has since regained some ground to reach 63.8 US¢.
The US dollar has made a similar move against the Australian, while it continues to weaken against the euro.
In New York, the UST 10yr yield benchmark is up to 2.29%.
The US benchmark oil price remains at US$47/barrel while the Brent benchmark is at US$49/barrel.
The gold price has risen again today to US$1,124/oz.
The New Zealand dollar has strengthened slightly from this time yesterday to 88.6 AU¢ and weakened to 55.9 euro cents. The TWI-5 remains unchanged at 67.7.
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 today is by following our Economic Calendar here »