The NZD opens at 0.6912
The Kiwi had a good day yesterday, or to be slightly more accurate, the USD had quite the selloff. The Fed kept interest
rates on hold yesterday and decided on a “Patient, wait and see approach”. This was largely priced in though, and the
market was expecting the fed to be dovish, so the extent of the move was slightly surprising. As well as the initial US
sell off, the fact that the US has slowed it’s rate hikes, (if not stopped them altogether) has led to a risk on move,
and the NZD and AUD catching a bid across the board.
Trade talk between the US and China continue, with a lot of talking and not too much beyond platitudes going on at the
moment. The Tariff deadline of 1st of March is getting closer, however if that happens to get extended, we would not be
too shocked.
Speaking of extensions, at the moment the UK is looking increasingly likely to head down that track. What help it would
be though remains to be seen, and I don’t think it is just us that will look forward to getting Brexit behind us, one
way or the other.
A fair bit of small data comes out today, before we have the Non-Farm Employment Change and Unemployment rate out of the
States early tomorrow morning NZT. Do talk to your dealer, as having a market order in could potentially be a good way
of taking advantage of any overnight moves.
Global equity markets are generally positive, Dow -0.29%, S 500 +0.64%, FTSE +0.39%, DAX -0.08%, CAC +0.36%, Nikkei +1.06%, Shanghai +0.36%.
Gold prices are up 1.1% to $1,325 an ounce. WTI Crude Oil prices are off a touch, currently down 1.7% trading at $54.07
a barrel.
ends