The post meeting communique from the Fed appears slightly more hawkish that the market was hoping in that there was no mention of delays on any move in the benchmark rates based on developments in the international environment. The Fed acknowledged that economic activity was expanding at a “solid pace” versus a previous assessment of a “moderate pace “,also noting good gains in labor market conditions. The Reserve Bank of New Zealand kept its official rate unchanged at 3.5%,but moved to a neutral stance,while expecting further depreciation in the currency.This led to weakening in the NZD (-.56%) & AUD (-1.5% )with increased expectations of a rate cut by the Reserve Bank of Australia next week.The Canadian dollar ( -.11%) was a little weaker overnight on the back of the continued weakness in crude prices and general USD strength.
CAD Range 1.2563-1.2511 Current 1.2550 RES 1.2584 1.2634 SUPP 1.2435 1.2337