HiFX Morning Update, March 9 2016

The NZDUSD opens at 0.6906 (mid-rate) this morning.

The NZD has been the worst performing currency of the majors in the past 24 hours and again opens on the lows.

West Texas Crude Oil was a big mover amongst the commodities, dropping a massive 4% overnight.

U.S. Crude Supplies reported an 8.2 million-barrel climb in domestic crude supplies for last week, lifting total commercial inventories to a new record weekly level of 528.4 million. That marked a ninth straight weekly increase. Analysts polled were forecasting an increase of 1.1 million barrels, ahead of 1.5m last week.

China's trade balance for February, in Yuan terms, came in at -60.4 billion CNY vs 172.5bn expected and 354.5bn last. The release in USD terms was -9.1 Billion vs 27.8bn expected. The data is a slightly negative input for the Aussie, and therefore the NZD gets sold off too, as exports disappoint markets and re-ignite concerns over China’s external demand.

U.S. Nonfarm Private Sector employment increased by 298,000 jobs from January to February according to the February ADP National Employment Report, which was the biggest number seen in years. The market was expecting an increase of 184k, so the USD strengthened in response.

Global equity markets were quiet and mixed: Dow -0.05, S&P +0.11%, FTSE -0.06%, DAX +0.01%, CAC -+0.11%, Nikkei -0.47%, Shanghai -005%.

Gold prices are down another 0.7% trading at $1,209 an ounce, WTI Crude Oil dropped 4% trading at $51.12 a barrel.

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