HiFX Morning Update, September 27 2016

HiFX Morning Update, September 27 2016

NZDUSD 0.7272 0.5%
NZDEUR 0.6459 0.2%
NZDGBP 0.5607 0.4%
NZDJPY 72.94 -0.3%
NZDAUD 0.9525 0.3%
NZDCAD 0.9625 1.0%

The NZDUSD opens at 0.7272 (mid-rate) this morning.

The NZD along with the JPY have been the best performing currencies over the past 24hrs. The NZD shrugged off yesterdays disappointing trade balance and has started to retrace some of its fall, following last week’s RBNZ statement.

Global equity markets came under pressure overnight on rumours that German Chancellor Angela Merkel has ruled out any state assistance for Germany’s largest bank. Deutsche bank shares fell 6.5% overnight and have now lost 52% of their value since January. The latest fall has been brought about by last week’s news that the US Justice Department has fined the bank $14 billion for miss-selling mortgage securities in the US.

Germany's Ifo business confidence index spiked to 109.5 in September from a revised 106.3 in August. The surprise result (economists had been expecting the index to edge up to 106.3) now sees the index at its highest level since May 2014.

US new home sales fell less than expected in August, after spiking to a 9yr high in July. With economists expecting sales to fall from 659k in July to 598k in August, the seasonally adjusted 609k annual result shows an increase of 20.5% compared to a year ago.

Global equity markets are sharply lower - Dow -0.91%, S&P 500 -0.82%, FTSE -1.32%, DAX -2.19%, CAC -1.80%, Nikkei -1.25%, Shanghai -1.76%.

Gold prices are little changed at $1,339 an ounce, WTI Crude Oil has retraced Friday’s fall currently up 3.6% trading at $46.10 a barrel

Upcoming Data releases (NZST):
No domestic data releases scheduled
2.00pm US Presidential Debate begins

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