HiFX Morning Update, June 20 2017
The NZDUSD opens at 0.7228 (mid-rate) this morning.
Overnight, hawkish comments from New York Fed President William Dudley has led to USD rally. With very little in the
way of economic data releases investors focused on Fed President Dudley’s address to the North Country Chamber of
Commerce, in Plattsburgh, where Dudley reiterated Yellen’s comments from last Thursday. Dudley stated “We are pretty
close to full employment. Inflation is a little lower than what we would like, but we think that if the labour market
continues to tighten, wages will gradually pick up and with that, inflation will gradually get back to 2 percent." The
USD immediately strengthened against all its rivals following Dudley’s comments. Later this morning Chicago Federal
Reserve President Charles Evans is expected to continue talk up the economy when speaking at the New York University
Money Marketeers event.
Yesterday U.K. Brexit Secretary David Davis, met with Chief EU negotiator Michael Barnier in Brussels to begin Brexit
negotiations. The UK have until 29th March 2019 to negotiate the terms of their departure from the European Union.
This afternoon the release of the RBA monetary policy meeting minutes should dictate direction for the NZDAUD cross rate
while overnight tonight, the latest global dairy trade auction will be the main NZD driver ahead of Thursday’s RBNZ rate
statement.
Global equity markets have had a positive start to the week - Dow +0.54%, S 500 +0.71%, FTSE +0.81%, DAX +1.07%, CAC +0.90%, Nikkei +0.62%, Shanghai +0.68%
Gold prices have pulled back currently down 0.6% at $1,245 an ounce. .WTI Crude Oil prices have started the week on the
back foot, currently down 0.7% at $44.44 a barrel.
ends