HiFX Morning Update, April 15 2016

HiFX Morning Update, April 15 2016

NZDUSD 0.6863 -0.9%
NZDEUR 0.6091 -0.7%
NZDGBP 0.4847 -0.5%
NZDJPY 74.97 -0.9%
NZDAUD 0.8905 -1.5%
NZDCAD 0.8816 -0.6%

The NZDUSD opens at 0.6863 (mid-rate) this morning.

The NZDUSD was sold off yesterday after better than expected Australian Employment data. Overnight weaker commodity prices initially saw the slide continue before recovering to open today at a similar level to yesterday’s close .

Australian Labour force saw the participation rate increase to 64.9%, unemployment drop to 5.7% from 5.8%, and overall employment increase by 26,100 jobs in March from a decrease of 700 jobs in February.

The Bank of England has decided to hold rates at 0.5% once again, a record low for seven years. All nine members of the BoE's Monetary Policy Committee (MPC) voted to hold on to low rates amid concerns over global growth and uncertainty ahead of a Brexit vote.

In the week ending April 9, the advance figure for U.S. seasonally adjusted Unemployment initial claims was 253,000, a decrease of 13,000 from the previous week's revised level, and better than the 270k market consensus.

U.S. Consumer Price Index increased 0.1% in March on a seasonally adjusted basis. Final demand prices decreased 0.2% in February and advanced 0.1% in January.

Today we have China GDP, Industrial Production and Fixed Asset Investment at 2pm. Overnight Euro Trade Balance, U.S. Preliminary University of Michigan Consumer Confidence, Empire State Manufacturing Index, Industrial Production will determine market direction. The G20 meet all day Saturday and the International Monetary Fund and World bank hold meeting both Saturday and Sunday.

Global equity markets are modestly higher: Dow +0.08%, S&P 500 +0.01%, FTSE +0.03%, DAX +0.67%, CAC +0.47%, Nikkei +3.23%, Shanghai +0.51%.

Gold prices are down $20 (-1.6%) currently trading at $1226 an ounce, WTI Crude Oil is down 2.7% to $40.9 a barrel

ends

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