HiFX Morning Update

The NZDUSD opens at 0.7035 (mid-rate) this morning.

The NZDUSD is trading at levels last seen in September 2010 after the USD surged higher following a stronger than expected non-farm payroll release. The NZD should continue to underperform ahead of this Thursdays RBNZ statement with the market equally divided on whether or not we’ll see a cut.

The report showed employment in the U.S. out striped economists estimates of an increase of 225k jobs, according to the report non-farm payroll employment rose by 280k jobs in the month of Mayfuelling investor expectations of a rate hike in the U.S. with some reports suggesting that this could happen at this month’s FOMC meeting.

Global equity markets are broadly lower - Dow -0.31%, Nikkei -0.13%, Shanghai +1.54%,FTSE -0.80%, DAX -1.26%, CAC -1.33%

Gold prices closed out the week a down 1.8% at $1171 an ounce, Oil (WTI) closed out the week up1.90% at 59.13 a barrel.

The current indicative mid-rates are:

NZDUSD 0.7035
NZDEUR 0.6345
NZDGBP 0.4615
NZDJPY 88.25
NZDAUD 0.9225
NZDCAD 0.8740

There are no domestic data releases today

ENDS

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