HiFX Morning Update, November 2 2016

HiFX Morning Update, November 2 2016

NZDUSD 0.7171 0.3%
NZDEUR 0.6488 -0.5%
NZDGBP 0.5861 0.3%
NZDJPY 74.63 -0.5%
NZDAUD 0.9377 -0.2%
NZDCAD 0.9601 0.1%

The NZDUSD opens at 0.7171 (mid-rate) this morning.

The NZD thus far has had little reaction to what was a stellar Global Dairy Trade auction result. The Latest GDT auction saw prices increase by 11.4% from the previous auction with an average selling price of $3,327 per tonne. Although volumes fell 12% from the previous auction, whole milk powder which is Fonterra's main export spiked 19.8%.

Yesterday as expected, both the RBA and the BOJ kept their cash rates unchanged with both currencies making small gains against all their rivals in immediate reaction to the announcements.

The US manufacturing data printed in line with expectations with the report showing the index rose 51.9 in October following September’s 51.5 print. The USD has come under pressure this week as investors position their books for tomorrows Federal Reserve rate announcement, with the pending US elections still finely balanced the Fed is expected to leave interest rates unchanged this month with a 11 basis point hike priced in for the December announcement.

This morning the market expects our unemployment rate to remain at 5.1% with the quarterly employment change to increase by 0.6% following Q2’s 2.4% increase.

Global equity markets are mixed - Dow -0.77%, S&P 500 -0.85%, FTSE -0.53%, DAX -1.30%, CAC -0.86%, Nikkei +0.10%, Shanghai +0.71%.

Gold prices are up 1.4% overnight currently trading at $1,288 an ounce WTI Crude Oil has slipped further currently down 1.4% trading at $46.44 a barrel.

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