This news makes it a great time to buy diamonds...... The NZDUSD opens higher at 0.8710 this morning, a level last seen in August 2011. Having traded to the 0.8700 level yesterday afternoon, the NZDUSD drifted back to the 0.8650 overnight before the 6am release of the minutes from the last US FOMC interest rate setting meeting. The Fed minutes eased concerns the central bank would raise interest rates soon after it ended its huge bond-buying program - the NZDUSD screamed 70 points higher in immediate response to hit 0.8720 - a 32-month high, as the USD was sold heavily across the board. The NZD TWI (trade weighted index) sits a short distance below all-times highs. The key points in the Fed minutes include: · Several officials said the market forecasts overstated the rate rise pace · More saw more downside risk to inflation than upside risk · No mention of rates being hiked within 6-months of ending the bond-buying program Global equity markets were higher on the day - Dow +1.1%, Nikkei -2.1%, Shanghai +0.1%, FTSE +0.7%, DAX +0.2% Gold prices increased 0.2% to USD$1310. Oil prices climbed 0.2%.
Posted on: Wed, 09 Apr 2014 22:42:27 +0000