HiFX Morning Update, November 17, 2017

HiFX Morning Update, November 17, 2017

The NZDUSD opens at 0.6875 (mid-rate) this morning.

Commodity linked currencies including the NZD continue to underperform. The AUD has been the big mover over the past 24 hours, losing ground against all its rivals following yesterday’s disappointing wage growth data and tumbling iron ore prices.

Australia's wage price index climbed a seasonally adjusted 0.5% in Q3, the result was unchanged from Q2’s result and came up short of the forecast 0.7% increase. The AUD fell sharply following the announcement.

Expectations that the Federal Reserve will hike rate at their December 13th meeting increased overnight with US inflation for the month of October printing in line with forecasts and retail sales for the same month unexpectedly increasing. As of this morning a 25 basis point hike by the Fed is all but priced in.

The UK Labour market report helped push the GBP higher with the report showing the unemployment rate remained 4.3% its lowest level since 1975, while for the same quarter the average earnings index rose by 2.2% slightly better than the expected 2.1% rise.

In the absence of any NZ economic data the highlight during our trading day is likely to come from Australia’s monthly employment report.

Global equity markets continue to slide- Dow -0.37%, S&P 500 -0.36%, FTSE -056%, DAX -0.44%, CAC -0.27%, Nikkei -1.57%, Shanghai -0.79%.

Gold prices are little changed trading at $1,277 an ounce. WTI Crude Oil prices have edged lower, currently down 0.3% trading at $55.36 a barrel.

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