HiFX Morning Update, October 2, 2017
The NZDUSD opens at 0.7203 (mid-rate) this morning.
A quiet end to the quarter saw the NZD trade tight ranges against all its rivals. The NZDUSD closed out the week just
above 0.7200 down nearly 2% since the September 24th election.
Friday’s US economic data releases which were once again mixed, had little effect on dollar. Stronger than expected
Chicago PMI data was countered by disappointing personal consumption expenditures (PCE) and consumer sentiment reports.
The Chicago business barometer spiked to 65.2 in September from 58.9 in August surprising economists who had tipped the
index to dip to 58.5. The PCE index which had been forecast to rise to 0.2 in September up from 0.1 in August, came up
short with a 0.1 reading, while consumer sentiment deteriorated by slightly more than previously estimated in September
with the index falling to 95.1 from the preliminary reading of 95.3.
End of month European data releases disappointed with German retail sales and European flash inflation data releases
printing below their respective forecasts. German retail sales decreased by 0.4% (exp +0.5%) in August, while Euro-zone
inflation remained at 1.5% in September. Economists had expected inflation to edge up to 1.6%.
The UK gross domestic product expanded in line with forecasts, growing 0.3% in Q2 while consumer confidence in the UK
showed a slight improvement with the index reading -9 for September ahead of the forecast -11 reading and up from
August’s -10 result.
Expect a quiet start with the majority of Australia enjoying a long weekend, and an absence of any local economic data
releases.
Global equity markets closed out the week on the rise - Dow +0.11%, S 500 +0.37%, FTSE +0.68%, DAX +0.98%, CAC +0.68%, Nikkei -0.03%, Shanghai +0.28%.
Gold prices edged lower on Friday closing out the week at $1,279 an ounce, WTI Crude Oil was little changed on Friday,
closing out the week at $51.67 a barrel.
ends