The NZD traded sideways ahead of the US FOMC announcement early this morning. It then gapped from 0.8240 to above 0.8300. It now sits around 0.8350. Yesterday’s NZ current account data (-4.3% vs. -4.8% expected) came and went without too much reaction from the currency. Currency markets had their eyes firmly set on the US FOMC meeting in the early hours of this morning. In contrast to broad expectation, the Fed failed to ‘taper’ its asset purchases at the meeting. As a result the USD fell sharply against all its peers. The NZD was a key beneficiary.
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BNZ