HiFX morning Update, August 29 2018

The NZDUSD opens at 0.6715 (mid-rate) this morning.

The NZD along with the CAD have been the strongest performing of the G10 currencies over the past 24hrs as markets continue to trade tight ranges in the absence of any tier one economic data releases.

The USD remains little changed after the US Conference Board reported its consumer confidence index had unexpectedly surged higher in August. The report showed consumer confidence index spiked to 133.4 in August following on from an upwardly revised reading of 127.9 in July. Economists had forecast the index to edge down to 126.8 in August following on from July’s originally reported 127.4 reading. The index now sits at its highest level since October 2000.

The CAD strengthened after White House spokeswoman Sarah Sanders reported Canadian Prime Minister Justin Trudeau and President Trump had a constructive conversation regarding the North American Free Trade Agreement on Monday and "agreed to continue productive conversations." Trade talks are expected to resume today with Canadian Foreign Minister Chrystia Freeland currently on route to Washington.

With very little in the way of economic data during our trading day investors will look to tomorrow morning’s US preliminary GDP data release for guidance. Economists are forecasting quarterly reading of 4.0% following last month’s advanced reading of 4.1%.

Global equity markets are mixed, - Dow +0.16%, S&P 500 +0.08%, FTSE +0.52%, DAX -0.09%, CAC +0.11%, Nikkei +0.06%, Shanghai -0.10%.

Gold prices are have edged lower, down 0.5% trading at $1,203 an ounce WTI Crude Oil prices have given back yesterday’s gains, down 0.7% trading at $68.09 a barrel.

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