HiFX Morning Update, April 6 2017

HiFX Morning Update, April 6 2017

The NZDUSD opens at 0.6969 (mid-rate) this morning.

.The NZD has edged lower against all its trading rivals over the past 24hrs.

Ahead of this morning’s FOMC meeting minutes economic data releases out of the US delivered mixed results. The ADP Non-Farm Employment report showed private sector employment for the month of March increased by 263k jobs well ahead of the estimated 184k additional jobs. The jump represents the highest monthly increase since Dec 2014. In contrast the Institute for Supply Management (ISM) non-manufacturing index fell more than expected in March after increasing at its fastest pace in over a year in February. The index recorded a reading of 55.2 for March well short of the estimated 57.0 reading.

The US Dollar Index (DXY) pushed higher in reaction FOMC meeting minutes. There were few surprises in the minutes and very little fresh insight into future policy with confirmation that there are divisions over the need for a faster pace of rate hikes given that inflation had moved higher. One of the discussion points that had not been muted before was that most Fed officials agree that shrinking the balance sheet is warranted and there is a “preference to change reinvestment of both Treasury and mortgage-backed securities when the time comes”

The UK’s service sector activity increased at its fastest pace this year with the Markit Purchasing Managers' Index rising to 55.0 in the month of March up from February’s 53.3 reading.

Global equity markets are mixed - Dow +0.67%, S&P +0.58%, FTSE +0.13%, DAX -0.53%, CAC -0.18%, Nikkei +0.27%, Shanghai +1.48%.

Gold prices are down 0.6% currently trading at $1,247 an ounce, WTI Crude Oil is little changed trading at $51.17 a barrel.

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