HiFX Morning Update, November 28, 2017

HiFX Morning Update, November 28, 2017

The NZDUSD opens at 0.6911 (mid-rate) this morning.

The NZD has started the week on the front foot, up circa 0.55 on the majority of its rivals. The NZDUSD traded to a two week high reaching 0.6925 before better than expected new home sales helped support the USD.

For the second consecutive month US new home sales surged higher, following on from September’s 645K sales, this morning’s Commerce Department report showed sales increased by 6.2% to an annual rate of 685k in October, its highest annual rate since hitting 727k sales in October 2007. Sales had been expected to drop to 625k from the previously reported 667k sales in September.

A sharp fall in oil prices has seen equity markets struggle. The fall comes ahead of Thursday’s OPEC meeting where there is growing speculation that Russia will oppose extending the current agreement to cut production by 1.8m barrels a day by another 12 months. Reports suggest Russia are not keen on extending the current agreement which runs through to March 2018 before it expires.

Global equity markets are broadly lower- Dow +0.1%, S&P 500 -0.05%, FTSE -0.35%, DAX -0.46%, CAC -0.56%, Nikkei -0.24%, Shanghai -0.94%.

Gold prices are higher, up 0.6% overnight, trading at $1,295 an ounce. WTI Crude Oil prices have plummeted, down 1.7%, currently trading at $57.95 a barrel.

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