The Kiwi Dollar opens the day at similar levels to yesterday with a lack of major data resulting in a tight trading range to start the week. The big events for the NZD this week are the US Federal Reserve meeting, and NZ GDP data both on Thursday morning. This afternoons ANZ business confidence number will also attract some interest as will the Global Dairy Auction overnight.
The Greenback was broadly weaker against most major currencies as investors adjusted positions ahead of Thursdays FOMC statement. The monetary policy decision is the main focus for markets this week, and the central bank is expected to raise interest rates for the fourth time this year, however the accompanying statement is widely expected to have a more dovish tone. Recent comments from Fed officials have suggested a slower pace of rate hikes in 2019.
The Aussie Dollar also traded a narrow range ahead of this afternoon’s RBA meeting minutes. Whilst these are not expected to show any significant shift in tone or sentiment, they will always be closely watched by markets. The other major data event for the AUD this week is the Unemployment Rate number released on Thursday. The NZD/AUD cross rate has barely moved and starts the day slightly up on yesterday.
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