HiFX Morning Update, September 7 2016

HiFX Morning Update, September 7 2016

NZDUSD 0.7414 1.5%
NZDEUR 0.659 0.6%
NZDGBP 0.5522 0.6%
NZDJPY 75.63 0.1%
NZDAUD 0.965 0.2%
NZDCAD 0.9523 0.8%

The NZD opens higher this morning up 1.5% at 0.7414 after another improvement in dairy prices, which rose 7.7% and was the 3rd consecutive rise in prices.

It is further supported by a big 6.7% bounce back in heavy traffic on NZ roads, confirming the recent drop was just a speed bump and reflects most parts of the economy are running strongly.

Over in Australia, rates were held steady at 1.5% the Reserve Bank of Australia's interest rate meeting held yesterday. The Current Account came in better than expected backing up the case to keep rates on hold.

The USD is down overall, the service sector slowed to its slowest rate in over six years according to the Institute for Supply Management coming in well down at 51.40 with market expectations at 55.4 Results like this make it harder for the Fed to raise rates in September

Eurozone growth expanded as estimated, albeit slower than the first quarter growing 0.3% Investor confidence jumped 5.6% after a positive retail PMI number

Global equity markets flat overnight- Dow +0.25, S&P 500 +0.3%, FTSE -0.78%, DAX +0.14%, CAC +0.24%, Nikkei +0.26%, Shanghai +0.61%.

Gold prices are up 1.7% currently trading at $1349 an ounce, WTI Crude Oil is holding at $45.25 a barrel

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