By Dan Bell
The NZD/USD opens higher at 0.8160 this morning.
Stronger than expected Australian inflation data triggered a rally in the AUD/USD, which dragged the NZD/USD higher initially.
The NZD/USD received a further boost after China posted better-than-expected Manufacturing data, although the figures still indicated Chinese manufacturing activity was shrinking.
The US Federal Reserve released its policy statement this morning. The Fed has pledged to keep interest rates near zero until mid-2015 and that it would continue purchasing USD$40 billion in mortgage-backed debt per month in an effort to ensure rates stay low across the yield curve and to push cash into the system.
Global equity markets were mixed. The US equity indices fell circa 0.2%, while the European markets were stronger by 0.1-0.6%.
Gold prices dipped a little further to USD$1702 an ounce, Oil prices fell 0.3% and Copper prices closed near 6-week lows at USD$7,817 a tonne. Other commodities prices were mixed.
The NZD opens at 0.8160 USD, 0.7895 AUD, 0.6290 EUR, 0.5090 GBP, & 65.05 JPY.
The RBNZ Cash Rate decision and statement will be released at 9:00am today. Rates are almost universally expected to remain at 2.50%.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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