The US dollar was stronger across the board today. It benefited from Euro’s weakness and higher US treasury yields. The upward momentum however, seems to be capped by concerns about the recent equity market volatility.
Meanwhile, New Zealand dollar lost some grounds after the Reserve Bank of New Zealand kept interest rate steady at a record low of 1.75% today. RBNZ had also cut its inflation forecast given their December quarter inflation numbers came in at 1.6 percent only against the expected 2 percent.
In other news, the National Australia Bank’s fourth-quarter business confidence came in at 6 index points compared to previous quarter’s reading of 8. However, we’ll await the Monetary Policy Statement by the Reserve bank of Australia tomorrow, to see what path our Aussie counterpart takes.