HiFX Morning Update NZ, December 7 2015

HiFX Morning Update NZ, December 7 2015

NZDUSD 0.6740 1.0%
NZDEUR 0.6200 1.8%
NZDGBP 0.4460 1.2%
NZDJPY 83.00 1.6%
NZDAUD 0.9180 1.1%
NZDCAD 0.9105 2.3%

The NZDUSD opens at 0.6740 (mid-rate) this morning.

A stronger than expected non-farm payrolls report fuelling speculation that the Fed will raise interest rates later this month has failed to boost the US dollar following Thursday’s disappointing ECB statement.

The U.S non-farm payrolls predicted to print at 190k jobs increased by 211k jobs for the month of November with job growth in September and October also upwardly revised to 145k jobs and 298k jobs, respectively, this is an increase of 35k more jobs than previously reported.

During a speech delivered to the Economic Club of New York ECB President Draghi defended the ECB’s decision on QE recalibration stating it was “exactly the right one” and that the ECB are on track to reach their inflation target “without delay”.

The key domestic driver this week will be Thursday’s RBNZ statement with the Reserve bank widely tipped to cut the OCR by 25 basis points.

U.S. equity markets surged higher following the payroll data - Dow +2.12%, S&P 500 +2.05%, FTSE -0.59%, DAX -0.34%, CAC Closed, Nikkei -2.18%, Shanghai -1.67%.

Gold prices rallied to a three week high closing at $1084 an ounce, WTI Crude Oil closed out the week below $40 at $39.97 a barrel.

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