HiFX Morning Update, April 26 2017

HiFX Morning Update, April 26 2017

The NZDUSD opens at 0.6945 (mid-rate) this morning.

The NZD has been the worst performer of the G10 currencies and it’s difficult to see why. After failing to break up through 0.7050 resistance against the USD on Monday the NZD quickly reversed lower. Despite improved risk sentiment after the French election's first round outcome and an absence of any local economic data releases investors seem to be reacting to Trump's protectionist policies, with the US President due to announce tax reforms later today.

Overnight US economic data releases delivered mixed signals to investors with consumer sentiment fall short of expectations while new home sales spiked 5.8% in March. After two consecutive monthly rises in confidence in the US, economists had expected to see the index dip from 125.6 to 123.1, with last night’s 120.3 result slightly worse than expected. Conversely The Commerce Department’s new home sales report showed sales surged 5.8% to an annual rate of 621k in March with February’s previously reported 585k result upwardly revised to 587k.

Global equity markets are broadly higher - Dow 1.21%, S&P 500 +0.71%, FTSE +0.15%, DAX +0.10%, CAC +0.17%, Nikkei +1.08%, Shanghai -0.16%.

Gold prices are down 1% currently trading at $1,262 an ounce .WTI Crude Oil is now trading below $50 a barrel at $49.48.

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