HiFX Morning Update August 13

HiFX Morning Update August 13

The NZDUSD opens at 0.6620 (mid-rate) this morning.

It’s been a wild 24hrs for currency markets after China dropped their reference rate for a second consecutive day this time by 1.6%. In immediate reaction to the news the NZDUSD traded down through its 0.6500 support level to a new 6yr low of 0.6469 before reversing sharply with many analysts now believing that the Fed will hold off on raising their interest rate until at least December and possibly into the new year.

Data releases out of the UK last night has seen the British Pound give back some of its recent gains with wage growth falling from 3.2% to 2.4% (exp 2.8%) and the ILO unemployment rate edging up to 5.6% from 5.5% in the three months to March.

Global equity markets have extended their fall - Dow -0.25%, S&P 500 -0.10%, FTSE -1.40%, DAX -3.27%, CAC -3.65%, Nikkei -1.58%, Shanghai -1.06%.

Gold prices are up $14 to $1123 an ounce, WTI Crude Oil is holding to $43.25 a barrel.

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