HiFX Morning Update, October 27 2016

HiFX Morning Update, October 27 2016

NZDUSD 0.7154 -0.1%
NZDEUR 0.6561 -0.2%
NZDGBP 0.5854 -0.5%
NZDJPY 74.83 0.2%
NZDAUD 0.9359 -0.1%
NZDCAD 0.9561 0.1%

The NZDUSD opens at 0.7154 (mid-rate) this morning.

The NZD has continued to trade tight ranges against all its rivals although Australia’s better than expected inflation data did push the NZDAUD cross rate below 0.9300 before correcting overnight.

Consumer prices in Australia rose 0.7% in the September quarter, and this headline caused the NZDAUD cross rate to gap lower, trading as low as 0.9290. The move was reversed when at closer inspection the data showed a large contributor to this result was fruit and vegetable prices which due to adverse weather conditions were up 19.5% and 5.9% respectively.

Crude oil prices spiked higher after the EIA reported a draw of 600K barrels in US inventories but the move has since been reversed on the reports that Russia is now against OPEC production cuts.

This morning the release of September’s trade balance result is likely to be the highlight although in recent times this has had little impact on the currency. Overnight investors will look to the US durable goods report for further direction.

Global equity markets remain mixed - Dow +0.16%, S&P 500 -0.09%, FTSE -0.85%, DAX -0.44%, CAC -0.14%, Nikkei +0.15%, Shanghai +0.50%.

Gold prices are down 0.6% over the past 24hrs, currently trading at $1,265 an ounce, WTI Crude Oil continues to slide currently down 1.8% at $49.10 a barrel.

ends

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