S&P/ASX 200 (INDEXASX:XJO) (ASX:XJO) has not followed the strength shown by the US overnight losing 30 points in the first hour.
Fortescue Metals Group (ASX:FMG), Worleyparsons Limited (ASX:WOR), and Magellan Financial Group Ltd (ASX:MFG) are the top large-cap performers all up around 2% early afternoon.
Pro Medicus Limited (ASX:PME), Alumina Limited (ASX:AWC), Incitec Pivot Limited (ASX:IPL) and Aristocrat Leisure Limited (ASX:ALL) are some of today’s worst performers.
New Zealand dollar weakens 1%
The New Zealand dollar is down by well over 1% vs the US dollar after its central bank kept rates on hold at 1.75% today, as expected.
What wasn’t expected was the extent of the dovish outlook statement that came with the cash rate being kept on hold.
The New Zealand central bank said the next move in rates is likely down, which means the currency is worth less relative to other currencies.
New Zealand’s share market bounced on this news with the NZX 50 Index (NZE:NZ50G) up 0.8% on the day.
Theoretically, a weaker currency makes shares cheaper for overseas investors and attracts offshore buying.