He said the Aussie news may have spurred some investors to sell Aussie and buy kiwi. Also, there "may just be a bit of a sting in the tail on this Orr news" as it has eliminated some uncertainty, he said.
He noted it overlooked news that the Ministry for Primary Industries says four new properties have tested positive for the bacterial cattle disease Mycoplasma bovis, including the first outbreak in the North Island.
"It's taking a lot in its stride," he said.
The trade-weighted index rose to 73.43 versus 72.96.
Looking ahead, he said markets will be focused on the Fed Thursday as well as monetary policy decisions from both the European Central Bank and Bank of England.
Domestically, the government's half-year economic and fiscal update and budget policy statement Thursday will be closely watched.
The local currency advanced to 51.91p from 51.40p and to 58.86 euro cents from 58.44 euro cents. It gained to 78.63 yen from 78.18 yen and rose to 4.5874 yuan from 4.5562 yuan.
New Zealand's two-year swap rate fell 3 basis points to 2.12 per cent and the 10-year swaps rose 6 basis points to 3.17 per cent.
