By Dan Bell
The NZDUSD opens at higher at 0.6657 this morning.
It’s all about the US Fed this morning.
As expected, the Fed raised interest rates by 0.25%, to a 2.00-2.25% range, and the USD ultimately weakened by a modest amount.
The NZDUSD traded in a 40 point range in reaction to the Fed rate decision, ahead of the RBNZ’s own interest rate decision at 9am, followed by a 10am press conference. The OCR (official cash rate) will remain at 1.75% – most interest will be on the press conference to understand the RBNZ’s current thinking on the likely future path and timing of NZ interest rates.
The key points from the US Fed decision and Chairman Powell’s press conference are:
Global equity markets were higher on the day (apart from in the US) – Dow -0.4%, S&P 500 -0.4%, FTSE +0.1%, DAX +0.1%, CAC +0.6%, Nikkei +0.4%, Shanghai -0.6%.
Gold prices are fell 0.5% to USD$1,195 an ounce, while WTI Crude Oil prices were dropped 0.8% at US$71.63 per barrel.
Current indicative rates:
Upcoming Data releases (NZST):
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »