HiFX Morning Update August 7

HiFX Morning Update August 7

NZDUSD 0.6550 0.7%
NZDEUR 0.5995 0.5%
NZDGBP 0.4220 1.2%
NZDJPY 81.70 0.6%
NZDAUD 0.8910 0.7%
NZDCAD 0.8590 0.1%

The NZDUSD opens at 0.6550 (mid-rate) this morning.

The NZDUSD is trading 50 points higher than the overnight lows at 0.6500 ahead of the Fonterra payout forecast today around 3pm. Speculation is growing of a sub NZD4.00 payout, perhaps even lower than the 2006/2007 level of NZD3.87.

The unemployment rate in Australia came in at a seasonally adjusted 6.3% in July, higher than estimates at 6.1%. The Australian economy added 38,500 jobs in July topping forecasts for a 10,000 increase.

The Market is looking ahead to the employment data from the US tonight. A strong jobs report would likely add to speculation that the Federal Reserve will raise rates in September, while a weak report could provide ammunition for more dovish central bankers to argue that the rate hike should be delayed.

German manufacturing new orders surged in June, driven by robust demand from abroad, thanks to a weaker euro, dispelling concerns of a slowdown in the largest euro area economy.

The Bank of England kept its key rate unchanged at a record low in a split vote in August as the majority of policymakers waited for signs of price pressures before starting monetary policy tightening.

Global equity markets were mixed- Dow -0.83%, S&P 500 -0.90%, FTSE -0.08%, DAX -0.44%, CAC +1.56%, Nikkei +0.24%, Shanghai -0.90%.

Gold prices are up $5 to $1089 an ounce, WTI Crude Oil is steady at $45.15 a barrel.

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