HiFX Morning Update, February 26 2016

HiFX Morning Update, February 26 2016

NZDUSD 0.6709 1.0%
NZDEUR 0.6089 1.0%
NZDGBP 0.4808 0.7%
NZDJPY 75.77 2.3%
NZDAUD 0.9289 0.5%
NZDCAD 0.9092 -0.4%

The NZDUSD is currently trading at 0.6709

The Kiwi continued higher overnight against its major trading partners in a “risk off” environment as equity markets rallied.

Orders for U.S. Capital Goods increased the most since June 2014, representing a pause in manufacturing’s downturn. The increase was broad-based -- from cars and computers to machines and metals -- and a sign that domestic demand is a source of support for manufacturers battered by lukewarm overseas markets. Durable Goods Orders rose 4.9% ahead of market expectation for a 3.0% increase.

U.S. House Price Index rose 1.4% in Q4. This is the eighteenth consecutive quarterly price increase in the purchase-only, seasonally adjusted index.

The number of Americans filing applications for unemployment benefits rose last week from a three-month low, in part reflecting the typical swings during holiday periods. Jobless claims increased by 10k to 272k in the week ended February 20.

UK GDP came in as the market expected at 0.5% for the final quarter of 2015, but the surprise drop in business spending fanned fears of a slowdown in the months ahead. Business spending fell at the sharpest pace for two years.

Euro zone Annual Inflation was 0.3% in January 2016 up from 0.2% in December 2015.

Global equity markets are higher except Shanghai: Dow 0.4%, S&P 500 0.24%, FTSE 2.48%, DAX 1.79%, CAC 2.24%, Nikkei 1.41%, Shanghai -6.41%.

Gold prices are up 0.2% currently trading at $1241 an ounce. WTI Crude Oil gave up yesterday’s gains and is down 1.6% currently trading at $31.48 a barrel.

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