ANZAC outperformance has been the main story of the night, with the NZD and AUD holding firm despite a general strengthening in the greenback. The NZD/USD spent the night (it’s fifth consecutive now) bouncing around inside the 0.8270-0.8330 range.The USD drew some support this morning from the Fed’s confirmation (in the September FOMC minutes) that tapering is still likely this year, with purchases expected to be wound down fully by mid-2014. Investors were a little reluctant to get too carried away with taking the USD higher though, as the risk of fiscal shenanigans derailing the US recovery continues to grow.
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