HiFX Morning Update, November 3 2016

HiFX Morning Update, November 3 2016

NZDUSD 0.7297 1.8%
NZDEUR 0.6574 1.3%
NZDGBP 0.5935 1.3%
NZDJPY 75.35 1.0%
NZDAUD 0.9525 1.6%
NZDCAD 0.9769 1.7%

The NZDUSD opens at 0.7297 (mid-rate) this morning.

On the strength of yesterday’s domestic data releases the NZD has been the strongest performing currency over the past 24hrs spiking to 73 cents against the USD.

This morning, and in line with expectations the US federal Reserve kept interest rates unchanged, while signalling that they could still hike in December as the economy gathers momentum and inflation picks up. The vote was 8-2 in favour of holding rates today, with Esther George, of the Kansas City Fed, and Loretta Mester, of the Cleveland Fed the two dissenters’. The vote in September was 7-3 with Boston’s Eric Rosengren joining Mester and George in voting to raise interest rates. "The committee judges that the case for an increase in the federal funds rate has continued to strengthen, but decided, for the time being, to wait for some further evidence of continued progress toward its objectives," the statement read.

Crude oil prices plummeted after the Energy Information Administration (EIA) reported crude inventories rose by 14.4m barrels for the week (exp 1.6m). this was the largest ever rise in US crude stocks in a single week.

Global equity markets are a sea of red - Dow -0.34%, S&P 500 -0.58%, FTSE -1.56%, DAX -1.48%, CAC -1.24%, Nikkei -1.67%, Shanghai -0.63%.

Gold prices are back above $1,300 currently trading at $1,306 an ounce WTI Crude Oil has slumped on US inventories data down 2.7% trading at $45.19 a barrel.

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