The NZD sits a little lower, around 0.7880 this morning. The NZD showed little response to yesterday’s tier 2 domestic data releases, migration and credit card spending. Rather, it drifted gently lower in anticipation of the release of US FOMC minutes early this morning. Overall the minutes confirm the US Federal Reserve is likely on track to begin ‘tapering’ its asset purchases next month. As the USD initially strengthened on the release and US bond yields surged the NZD fell as low as 0.7850. However, it soon found its feet and has subsequently rebounded to sit just below 0.7900.
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BNZ