HiFX Morning Update, November 11, 2017

HiFX Morning Update, November 11, 2017

The NZDUSD opens at 0.6963 (mid-rate) this morning.

The RBNZ left the OCR unchanged at a record low of 1.75% yesterday morning and the NZD/USD rallied 0.6% in the hour following the announcement. The RBNZ is in no rush to raise interest rates and maintains a neutral stance though ‘not firmly neutral’. The RBNZ sees the NZD at fair value, and core inflation would need to pick up to change their current stance.

The NZD/USD has traded a 108 point or 1.57% range this week and begins Friday 16 points or 0.23% from the 0.6979 high set last night.

In the week ending November 4, the advance figure for seasonally adjusted initial claims was 239,000, an increase of 10,000 from the previous week's unrevised level of 229,000. The 4-week moving average was 231,250. The average number of applications filed over the past month was the lowest in 44 years.

Swiss National bank chairman Jordan said the SNB has room to manoeuvre on negative rates if necessary which saw the USD/CHF rates trade from 1.0020 to 0.9920

Key data releases tonight include UK Manufacturing Production and U.S. University of Michigan Consumer Sentiment and Inflation Expectations

Global equity markets are lower except China: Dow -0.77%, S&P 500 -0.75%, FTSE -0.61%, DAX -1.49%, CAC -1.16%, Nikkei -0.20%, Shanghai +0.36%.

Gold prices have steadied, up 0.1% trading at $1,286 an ounce. WTI Crude Oil prices are up 0.5% at $57.31 a barrel.

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