HiFX Morning Update, March 6 2018

HiFX Morning Update, March 6 2018

The NZDUSD opens at 0.7224 (mid-rate) this morning.

The GBP has been the strongest performing of the G10 currencies after the HIS market PMI report showed the UK service sector activity expanded at the fastest pace in four months in February. Following January’s 53.0 reading the index spiked to 54.5 in February, well ahead of the forecast 53.3 result.

The CAD continues to underperform with the US wanting to renegotiate a “new and fair NAFTA agreement” and Trump’s overnight tweet that “Canada must treat our farmers much better” added further downward pressure on the CAD.

Yesterday’s Italian election failed to produce an outright winner and resulted in another hung parliament. The Eurosceptic 5-Star Movement gained 31.8% of the vote emerging as the largest single party, while the anti-migrant and Eurosceptic League, formerly known as the Northern League also performed far better than expected.

This morning’s US non-manufacturing index edged down to 59.5 in February from 59.9 in January, the dip was less than expected with economists forecasting the index to pull back to 59.0.

In the absence of any NZ economic data investors will look across the ditch to the Australian retail sales and monetary policy statement for NZDAUD direction.

Global equity markets are broadly higher - Dow +0.77%, S&P 500 +0.71%, FTSE +0.66%, DAX +1.49%, CAC +0.60%, Nikkei -0.66%, Shanghai +0.07%.

Gold prices have edged down 0.2% trading at $1,319 an ounce. WTI Crude Oil prices have surged higher, up 2.2% over the past 24 hours, trading at $62.42 a barrel.

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