HiFX Morning Update, May 16, 2017

HiFX Morning Update, May 16, 2017

The NZDUSD opens at 0.6877 (mid-rate) this morning.

The NZD is trading a little higher against the majority of its rivals,benefiting from yesterday’s better-than-expected retail sales data. The report showed Q1 retail sales spiked a seasonally adjusted 1.5% (exp 1.1%) while core retail sales (excludes autos and gas stations) were up 1.2% (exp 0.9%).

Overnight US data releases were once again mixed with the New York manufacturing sector reporting a slight contraction for the month of May. The index dipped by 1.0 in May following a 5.2 gain in April. Economists had forecast the index to rise to 7.0. The better news came from the latest homebuilder confidence report with the Housing Market Index unexpectedly rising to 70 in May after declining to 68 in April. Economists had forecast an unchanged result.

The only data release of note during our trading day is the release of the RBA monetary policy meeting minutes due to hit the tapes at 13:30, while overnight tonight the NZD direction will be dictated by the latest GDT auction. The futures prices for WMP are currently down 2% ahead of tonights auction.

Global equity markets are broadly higher - Dow +0.37%, S&P 500 +0.42%, FTSE +0.26%, DAX +0.29%, CAC +0.22%, Nikkei -0.07% Shanghai +0.22%.

Gold prices have edged higher currently trading at $1,227 an ounce .WTI Crude Oil are up for the fourth consecutive trading session currently trading at $48.87 a barrel a gain of 2.2%

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