Global Themes

NZD

NZD firm ahead of US Fed meeting

Solid dairy prices help NZD/USD nudge above .7300.

The kiwi opens this morning in good stead after the Global Dairy Trade auction posted a positive 0.9%, with all of Fonterra's key products such as Butter, SMP and WMP modestly rising.

US President Donald Trump was again in the headlines overnight. In a speech at the United Nation he vowed to "totally destroy" North Korea unless it backed off on its nuclear testing.

It could be a very eventful end to the week with the US Fed interest rate meeting tomorrow morning and then local elections this weekend.

NZD/JPY back over 81.00

NZD up across the board.

NZD/JPY importers get an opportunity to look at putting some hedging in place above the key 80.00 mark as we approach the busy Christmas period.

NZD/AUD has also bounced over a cent above the precarious .9000 level to give importers some relief. Having orders in place for spikes higher has been a good strategy employed by some importers.

US Fed in focus

The outcome of their two day meeting will be released around 6am local time tomorrow morning.

The markets are now only expecting one more hike this year in December as inflationary pressures remain subdued, so it will be interesting to see the updated outline from the Fed themselves.

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