The NZD/USD sits lower this morning, trading just above 0.8170 currently. Along with most of its peers, the NZD suffered extreme volatility yesterday morning as the market digested the implications of the US FOMC finally announcing a start to its ‘tapering’ process (see Majors and Fixed Interest). Volatility was then compounded by the release of NZ Q3 GDP yesterday morning (1.4%q/q vs. 1.1% expected). While the headline was strong, equating to 3.5%y/y growth, it was flattered by post drought impacts and technicalities. It was a good reading, but not as strong as it initially appeared. Taking all of this in its stride the NZD/USD sits a little lower this morning at 0.8170, still within ranges of recent months.
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BNZ