HiFX Morning Update, October 11, 2017
The NZDUSD opens at 0.7068 (mid-rate) this morning.
Currency markets continue track sideways as the US economic data drought continues. Overnight, tonight the release of
the FOMC meeting minutes from the 21st Sept meeting should provide investors with direction.
The EUR strengthened overnight after German exports exceeded economists’ estimates in August. Following on from July’s
0.2% increase in exports, last night’s report showed exports surged a calendar-and-seasonally adjusted 3.1% in August.
Imports also rose with a 1.2% increase in August following on from 2.4% growth in July. German trade surplus increased
to 21.6B up from July’s 19.3B and well ahead of the forecast 19.8B result.
Manufacturing production along with construction output in the UK for the month of September helped the GBP keep pace
with the EUR and outperform its other rivals. Manufacturing output grew 2.8% y/y in August following on from July’s 2.7%
gain and surpassed forecasts of a 1.9% increase. Construction output which fell by 1% in July and was expected to remain
flat in August, increased by 0.6%.
Following reports that Saudi Arabia would cut its oil exports in November by 560k barrels a day crude oil prices have
surged higher currently up circa 3%.
NZ’s Political uncertainty which continues to weigh on the currency looks to continue beyond Thursday after Winston
Peters last night announced that his self-imposed deadline was to be extended.
Global equity markets remain mixed - Dow +0.22%, S 500 +0.17%, FTSE -0.40%, DAX -0.21%, CAC -0.04%, Nikkei +0.64, Shanghai +0.26%.
Gold prices have edged higher, up 0.7% trading at $1,291 an ounce. WTI Crude Oil prices have surged higher, up 2.6%
overnight currently sitting at $50.96 a barrel.
ends