New Zealand’s Central bank struck a neutral tone as it kept interest rates at a record low of 1.75 percent this morning. Emphasizing its next move was dependent on data and that downside risks to growth remained recent despite robust figures.
Data yesterday showed unemployment had unexpectedly dropped to a decade-low of 3.9 percent in the September quarter.
Australian data has been pointing in the wrong direction lately, and a broad-market correction on the Aussie could be in the works if China Trade Balance numbers pull the rug out from underneath Australian bidders.
The US dollar traded in a narrow range versus major peers today, as investors took in the U.S. midterm election results, and turned their focus to the Federal Reserve’s monetary tightening path.
The central bank’s Federal Open Market Committee (FOMC) is due to release its latest policy decision later tonight.