Wall Street closed in the red as we saw the energy and financial sectors weighed down heavily by the uncertainty of the OPEC meeting and the debt worries of European banks, with the DJIA losing 0.27%, the S&p500 losing 0.51% and the NASDAQ finishing down 0.54%. The sentiment was reverberated in the Asian session with Japans Nikkei 225 losing 0.3%and Australia’s ASX 200 losing 0.1%.

In FX, we saw choppy trade with no real gains by either bears or bulls as markets anticipate the impact of upcoming news releases which will hopefully give more certainty to the outlook of any future movements by central banks. With the US the only major economy to have tightened rates, we are seeing a larger disparity between the USD economy and elsewhere which, if supported by data in which the US continues to impress, will see the USD pull away further from its counterparts as we see the USD index move deeper into its 13 years’ highs.

The major news of the day come from New Zealand in which we expect the reserve bank of New Zeeland (RBNZ) to release the Financial Stability Report before RBNZ Governor Wheeler takes the podium. The report and speech will be scrutinised by investors as they look for clues as to the current state of the NZ economy and most importantly the outlook of the RBNZ, who is the decision maker when it comes to changing interest rates. A more hawkish report and speech in which Wheeler sites a stabilizing NZ economy and no need for further rate cuts, would result in the NZD being snapped up across the board as signs of recovery are priced in. however, a report or speech which sites headwinds and the need for further rate cuts will see the NZD depreciate as the expected weakening of the New Zealand economy is priced in.