After dribbling lower for much of this week, this morning’s FOMC Statement has thrown the NZD/USD something of a lifeline. USD selling in the wake of the Statement has the kiwi back up and sniffing around the 0.8000 mark.
The change in the Fed’s language this morning was subtle, but it did throw a bone to the doves. Clearer indications that the FOMC is concerned about rising US mortgage rates and low inflation have injected a bit more uncertainty into the market’s expectation QE tapering will kick-off in September. As a result, US bond yields and the USD have lost ground in the wake of the Statement
Read the full report: FX Strategy
BNZ