HiFX Morning Update

HiFX Morning Update

May 14

The NZDUSD opens at 0.7472 (mid-rate) this morning.

After yet another disappointing U.S data release (this time their monthly Retail Sales number) the USD has again lost ground against all its major competitors, with the NZDUSD rate once again testing 0.7500. The direction for today will be driven by our retail sales data release due to hit the tapes at 10:45.

With economists expecting the U.S Retail Sales to edge up by 0.2% after the previous months 0.9% growth, the USD found itself immediately under pressure when the report came in flat.

Following last night’s BOE inflation report, Gov Carney lowered the UK’s 2015 growth to 2.5% (previously 2.9%) citing lower productivity and sterling strength, but indicated that the interest rate would rise by the middle of 2016 with inflation expected to return to its 2% target within 2yrs.

Global equity markets remain mixed- Dow -0.08%, Nikkei+0.71%, Shanghai -0.58%,FTSE +0.23%, DAX -1.05%, CAC -0.26%

Gold prices are sharply higher up $21 to $1214 an ounce, Oil (WTI) is slightly lower trading at $60.23 a barrel

The current indicative mid-rates are:
NZDUSD 0.7472
NZDEUR 0.6585
NZDGBP 0.4750
NZDJPY 89.05
NZDAUD 0.9225
NZDCAD 0.8945

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