HiFX Morning Update, November 7 2017

HiFX Morning Update, November 7 2017

The NZDUSD opens at 0.6922 (mid-rate) this morning.

The NZD recovered overnight after initially slipping lower following yesterday’s inflation expectations data release. The survey conducted by the RBNZ for Q4 proved disappointing with the headline forecast edging down from 2.09% to 2.02%.

A lack of tier one economic data has seen currencies trade tight ranges overnight with the EUR the poorest performer of the G10 currencies amid risk aversion brought about by disappointing earnings reports.

Germany's factory orders unexpectedly increased in September with the Destatis report revealing factory orders increased by 1% following August’s 4.1% surge and surprising economists who had forecast orders to decrease by 1.1%. The report revealed that although domestic orders remained the increase was driven once again by offshore demand.

Crude oil prices are now trading at their highest level since July 2015 as Saudi Arabia’s crown prince Mohammed bin Salman continues with his an anti-corruption crackdown arresting a number of royals, ministers, and investors leading to political instability in the region.

The RBA are widely expected to keep interest rates unchanged for the 15th consecutive month at this afternoon’s monetary policy meeting. The Reserve bank will be disappointed with retail spending slipping into negative territory in the September quarter, and are expected to site rising housing debt and a lack of wage inflation as major risks to the economic outlook.

Global equity markets are mixed- Dow +0.02%, S&P 500 +0.05%, FTSE +0.03%, DAX -0.07%, CAC -0.19%, Nikkei +0.04%, Shanghai +0.49%.

Gold prices have retraced Friday’s fall, up 0.9% trading at $1,281 an ounce. WTI Crude Oil prices have continue to surge, up 2.6% overnight currently sitting at $57.11 a barrel.

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