HiFX Morning Update, February 11 2016

HiFX Morning Update, February 11 2016

NZDUSD 0.6658 0.3%
NZDEUR 0.5911 0.6%
NZDGBP 0.4587 -0.1%
NZDJPY 75.80 -0.5%
NZDAUD 0.9377 -0.2%
NZDCAD 0.9285 0.9%

The NZDUSD opens at 0.6658 (mid-rate) this morning.

In the absence of any local data releases the NZD traded fairly tight ranges against its major trading partners as investors waited for Federal reserve Chair Janet Yellen’s address to Congress.

In what has been viewed as a fairly balanced speech Yellen failed to rule out another rate hike in its March 15-16 meeting but at the same time said higher Interest rates for riskier borrowers and the strengthening dollar, which has hurt exports, as well as a fall in stocks is “less supportive of growth”. Yellen went on to comment "These developments, if they prove persistent, could weigh on the outlook for economic activity and the labour market, although declines in longer-term interest rates and oil prices could provide some offset".

Overnight, U.K. industrial production declined at a faster pace than expected in December, with economists expecting a flat reading following Novembers 0.8% fall, the report showed Industrial production fell 1.1%t month-on-month. Manufacturing output also disappointed falling 0.2% verse expectations of a 0.1% rise.

Global equity markets with the exception of the Nikkei have rallied - Dow +0.29%, S&P 500 +1.11%, FTSE +0.71%, DAX +1.55%, CAC +1.59%, Nikkei -2.31%, Shanghai CLOSED.

Gold prices are holding steady at $1196 an ounce, WTI Crude Oil is little changed at $27.75 a barrel.

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