HiFX Morning Update, April 22 2016

HiFX Morning Update, April 22 2016

NZDUSD 0.6910 -0.9%
NZDEUR 0.6118 -0.9%
NZDGBP 0.4822 -0.8%
NZDJPY 75.61 1.3%
NZDAUD 0.8927 -0.3%
NZDCAD 0.8791 -0.3%

The NZDUSD opens at 0.6910 (mid-rate) this morning.

The NZD has given up the gains made earlier in the week to be down another 1% overnight.

In his regular press conference following the latest ECB monetary policy decision, President Draghi’s main message was one of determination to combat low inflation. The bank is ready to act again if warranted, but he also called for patience following the aggressive moves last month. He stated that interest rates would remain at current or lower levels for an extended period of time, which was a slight shift from his closing remarks at the previous press conference when he stated that he did not expect interest rates to decline further.

U.S. Jobless claims unexpectedly decreased to the lowest level since 1973 as the U.S. labour market remains a pillar of support in the world’s largest economy. New applications for unemployment benefits fell by 6,000 to 247,000 in the week ended April 16. The number of Americans already on benefit rolls declined to a more than 15-year low. Limited dismissals signal that employers are still optimistic about the U.S. demand outlook.

U.S. Firms responding to the Manufacturing Business Outlook Survey reported no improvement in business conditions this month. The indicator for general activity, which rose sharply in March, fell to a slightly negative reading in April. The diffusion index for current activity decreased from 12.4 in March to -1.6 this month. The index had turned positive last month following six consecutive negative readings.

In April 2016, after three consecutive months of decline, the EU and Euro Area Flash Consumer Confidence indicator picked up slightly in both the EU (by 0.5 points to -6.8) and the euro area (by 0.4 points to -9.3) compared to March.

Global equity markets are mixed: Dow -0.6%, S&P 500 -0.47%, FTSE -0.45%, DAX +0.14%, CAC -0.20%, Nikkei +2.70%, Shanghai -0.66%.

Gold prices are up $7 currently trading $1249 an ounce, WTI Crude Oil continues to push higher currently up 1.8% at $43.38 a barrel.

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