HiFX Morning Update, April 18 2017

HiFX Morning Update, April 18 2017

The NZDUSD opens at 0.7005 (mid-rate) this morning.

Investors remain cautious as geopolitical instability continues to dominate the news. The NZDUSD traded to a high of 0.7035 on a combination of better-than-expected China data and disappointing US economic data.

China’s GDP and Industrial production growth were both ahead of economists’ estimates with Q1 GDP expanding at 6.9% y/y (exp 6.8%) while Industrial production growth spiked to 7.6% in March (exp 6.3%) after recording 6.3% growth in both January and February.

On Friday the US Labor Department consumer price index fell by 0.3% in March after recording a small increase (+0.1%) in February, while retail sales in the month of March fell by 0.2% with February’s previously reported 0.1% uptick downwardly revised to a 0.3% fall.

The French presidential election is looking more and more unpredictable with four candidates having a realistic chance of making it through to the second round after this weekend’s first round vote. The latest polls show conservative François Fillon and communist Jean-Luc Mélenchon have seen late surge in voter support and are within reach of the current front runners’ centrist Emmanuel Macron and far-Right leader Marine Le Pen.

Domestic highlights for the NZD this week are likely to be tonight’s Fonterra auction and Thursday’s quarterly CPI data release.

European equity markets closed lower ahead of the long weekend, but this morning US markets are in positive territory - Dow +0.64%, S&P 500 +0.6%, FTSE -0.29%, DAX -0.38%, CAC -0.59%, Nikkei +0.11%, Shanghai -0.74%.

Gold prices are up 15 from Friday trading at $1,287 an ounce .WTI Crude Oil is down 1.1% from last week’s close currently trading at $52.65 a barrel.

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