HiFX Morning Update, August 11 2016

HiFX Morning Update, August 11 2016

NZDUSD 0.7215 0.7%
NZDEUR 0.6458 0.3%
NZDGBP 0.5548 0.8%
NZDJPY 73.08 0.3%
NZDAUD 0.9361 0.3%
NZDCAD 0.9417 0.2%

The NZDUSD opens at 0.7215 (mid-rate) this morning.
The NZD has pushed higher against all its major rivals overnight despite expectations of a 25 bps interest rate cut at this morning’s RBNZ meeting. With the futures market currently pricing in 70bps of cuts to the OCR by the end of the year, it would take a 50bps cut at this morning’s meeting along with a dovish statement to send the NZD lower.

Once again there was very little in the way of economic data to drive the markets with investors awaiting Friday’s US retail sales, PPI and consumer sentiment reports for further direction.

Oil prices continue to fall on concerns of a global supply glut. Last the US Energy Information Administration reported that domestic crude supplies rose 1.1m barrels confounding economists that had forecast a fall of 1.3m barrels from last week’s 1.4m surplus.

Global equity markets with the exception of the FTSE are slightly lower - Dow -0.33%, S&P 500 -0.41%, FTSE +0.22%, DAX -0.39%, CAC -0.36%, Nikkei -0.18%, Shanghai -0.23%.

Gold prices are slightly higher, up 0.4% at $1,346 an ounce, WTI Crude Oil has continued to fall currently down 2.5%, trading at $41.54 a barrel

ends

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