HiFX morning Update, August 30 2018

The NZDUSD opens at 0.6713 (mid-rate) this morning.

The British Pound is the standout performer surging higher after EU Brexit negotiator Michel Barnier speaking alongside Germany's foreign minister Heiko Maas announced that "the EU is preparing to offer a partnership with Britain such has never been with any third country." Investors were quick to respond to the news with the GBP sharply higher and back above the physiological 1.30 level against the USD.

This morning the US Commerce Department upwardly revised its Q2 GDP estimate reporting that real gross domestic product increased by 4.2% in Q2 a slight increase from the 4.1% increase previously reported. Economists had forecast growth to be downwardly revised to 4.0%.

US pending home sales unexpectedly declined in July with the National Association of Realtors reporting its index fell by 0.7% to 106.2 in July following on from June’s upwardly revised 1.0% increase. The index had been forecast to increase by 0.3% compared to June’s previously reported 0.9% rise.

Crude oil prices are up circa 2.0% after the Energy Information Administration (EIA) reported crude inventories fell by 2.6m barrels in the week to Aug. 24, compared with analysts' expectations for a decrease of 686k barrels.

This morning’s ANZ business confidence data release will be the main driver for the NZD during our trading day. The Index has been in negative territory since last year’s election with July’s result showing business confidence plummeted to a net 45% of those surveyed reporting they expect general business conditions to deteriorate in the year ahead.

Global equity markets remain mixed, - Dow +0.24%, S&P 500 +0.45%, FTSE -0.71%, DAX -+0.27%, CAC +0.30%, Nikkei +0.16%, Shanghai -0.31%.

Gold prices are have inched higher, up 0.2% trading at $1,205 an ounce WTI Crude Oil prices are rising up 1.8% trading at $69.34 a barrel.

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