HiFX Morning Update, October 20, 2016
NZDUSD 0.7228 0.4%
NZDEUR 0.6589 0.5%
NZDGBP 0.5892 0.7%
NZDJPY 74.71 -0.1%
NZDAUD 0.9365 -0.3%
NZDCAD 0.9489 0.5%
The NZDUSD opens at 0.7228 (mid-rate) this morning.
The NZD has been happy to trade tight ranges against all its rivals opening this morning having made small gains against
most of the majors.
This morning’s US housing data produced a mixed result with building permits for September exceeding expectations 1.23m
Vs exp 1.17m while housing starts plunged by 9% to an annual rate of 1.047m in September after falling 5.6% in August.
The Bank of Canada left their overnight cash rate unchanged at 0.5% helping push the CAD higher before the move was
reversed after Central Bank Gov Poloz in the accompanying press conference announced that the BoC had actively discussed
adding to their current stimulus.
Crude oil prices spiked overnight after Saudi Arabia's oil minister said certain non-OPEC countries will join OPEC and
Russia in curbing supplies, and the latest US Crude Oil Inventories report showed a decline in stockpiles of -5.2m
barrels.
This afternoons Australian employment report will dictate direction of the NZDAUD cross rate while currencies are likely
to continue to trade sideways ahead of the final US election debate.
Tonight all eyes will be on the European Central Bank’s latest rate announcement amid worries the ECB may start to taper
their bond purchases.
Global equity markets have continued to edge higher - Dow +0.47%, S 500 +0.37%, FTSE +0.31%, DAX +0.13%, CAC +0.25%, Nikkei +0.21%, Shanghai +0.03%.
Gold prices are up 0.6% currently trading at $1,266 an ounce, WTI Crude Oil has surged higher currently up 3.2% at
$51.70 a barrel.
ends