HiFX Morning Update - September 19

HiFX Morning Update - September 19

NZDUSD 0.7265 -0.8%
NZDEUR 0.6510 0.0%
NZDGBP 0.5582 1.2%
NZDJPY 74.15 -1.1%
NZDAUD 0.9710 0.1%
NZDCAD 0.9600 0.6

The NZDUSD opens at 0.7265 (mid-rate) this morning.

The USD outperformed at the end of last week following a better-than-expected consumer price index report. The cost of living in the US for the month of August rose 0.2% from July, slightly ahead of the expected 0.1% rise. Core CPI now sits at 2.3% a level last seen in April 2012.

The week ahead is all about Thursday morning when both the Federal Reserve and the RBNZ announce their respective interest rate decisions. The market is currently pricing in a 20% chance of a US rate hike while a 15% chance of a rate cut is priced into the NZD.

Global equity markets finished the week broadly lower - Dow -0.49%, S&P 500 -0.38%, FTSE -0.30%, DAX -1.49%, CAC -0.93%, Nikkei +0.70%, Shanghai -0.68%.

Gold prices were down 1.8% over the course of the week closing on Friday at $1,310 an ounce, WTI Crude Oil lost 6% over the past week closing on Friday at $43.03 a barrel.

ends

© Scoop Media