HiFX Morning Update, October 18 2016
NZDUSD 0.7131 0.3%
NZDEUR 0.6482 0.1%
NZDGBP 0.5848 -0.1%
NZDJPY 74.05 -0.1%
NZDAUD 0.935 0.3%
NZDCAD 0.936 0.3%
The NZDUSD opens at 0.7131 (mid-rate) this morning.
.The NZD has edged higher overnight boosted by expectations that tonight’s Global Dairy Trade auction will break its two
consecutive decline streak and show an increase from the previous auction of between 5% and 10%.
This morning Statistics New Zealand will release its third quarter inflation data with economists expecting to see a
flat result after its 0.4% rise in the second quarter. This result will put further pressure on the Reserve bank to cut
interest rates in an effort to bring inflation back into its 1%-3% target range. The market is currently pricing in a
84% chance that the RBNZ will cut the OCR by 0.25% at its November 10th meeting.
Overnight Euro-zone inflation printed in line with expectations in September, with the report showing inflation rising
to 0.4% up from 0.2% in August. This is its highest level since October 2014.
Global equity markets are broadly lower - Dow -0.32%, S 500 -0.28%, FTSE -0.94%, DAX -0.73%, CAC -0.46%, Nikkei +0.26%, Shanghai -0.74%.
Gold prices are up 0.5% currently trading at $1,256 an ounce, WTI Crude Oil is trading back below $50 a barrel currently
down 1.2% at $49.74.
ends