Sentiment was positive as US major equity indices closed in positive territory yesterday. Their counterparties in Asia however failed to find the same optimism and were mostly heading lower this morning with the exception of the ASX 200.
US Dollar is practically where it started at the start of this week’s session, but has so far been standing tall after closing higher for the week on Friday. We move into the Fed’s two-day meeting and policy communication is expected late on Wednesday at the end of the meeting. Consensus expectations are for the Fed to deliver a rate rise tomorrow.
The USD might initially act on “buy the rumour sell the fact” and may look a bit wobbly looking for direction but any positive comments with regards to the outlook of the US economy are likely to be a trigger for the currency’s direction.
The Reserve Bank Of New Zealand will welcome a new head in March, Adrian Orr has been appointed for the role and is expected to take office in March. His name was welcomed as he is expected to remain quite closed to current policy.
Later this morning we have UK CPI,RPI and also PPI for the month of November. From the EZ we have the ZEW survey for economic sentiment and later US PPI.
