INDEPENDENT NEWS

HiFX morning Update, September 19 2018

Published: Wed 19 Sep 2018 08:54 AM
The NZDUSD opens at higher at 0.6581 this morning.
Tit-for-tat trade barriers have dominated the news wires the past 24 hours. US President Trump announced a 10% tariff on USD$200 billion of Chinese imports. China responded with retaliatory tariffs on USD$60 billion in US goods. Barring a deal, US tariffs will rise to 25% at the end of 2018, and tariffs on an additional USD$267 billion Chinese goods could be announced. Love is certainly not in the air!
US companies and consumers are likely to rush to buy before the tariffs take affect – this additional spending could boost growth for the next 3 months. However, spending would subsequently slowdown in the New Year as consumers balk at higher prices and businesses stop ordering. This, in turn, would make it more complicated for the US Fed and their interest rate decisions.
Closer to home, Fonterra’s Global Dairy Trade auction disappointed once again, with the price index falling 1.3% and whole milk powder down 1.8%. The bright spot was volume of goods sold which increased 0.9%.
Prime Minister Jacinda Ardern’s GDP comments snafu resulted in a small, short-lived jump in the NZD yesterday. Ardern said she had got a “hint” of the GDP numbers and was HiFX Morning Update– her office subsequently denied she had advanced notice of the figures. The official GDP release will take place 10:45am Thursday.
The USD ended the day little changed, while the NZDUSD traded in the moderate range and ultimately made small gains against the USD.
The NZDAUD fell modestly after the Reserve Bank of Australia said the next move in their interest rate is likely to up, however this would not happen in the near-term.
The GBP pulled back from recent highs as the markets became more cautious about progress towards Brexit.
Westpac Consumer Sentiment will be released at 9am.
Global equity markets were higher on the day - Dow +0.9%, S 500 +0.7%, FTSE -0.0%, DAX +0.5%, CAC +0.3%, Nikkei +1.4%, Shanghai +1.8%.
Gold prices are fell 0.7% to USD$1,201 an ounce, while WTI Crude Oil prices jumped 1.6% to US$69.78 per barrel.
ends
HiFX
International Payments Expertly Done
HiFX is one of the largest foreign exchange and international payment specialists in the world, managing over $30 billion on behalf of over 100,000 clients worldwide every year.
Large enough to undertake the biggest transactions, yet small enough to care about each and every one – send and receive overseas payments and manage your account anytime, anywhere. HiFX gives you the flexibility you need to transfer money quickly and easily via a secure online platform 24 hours a day, seven days a week - making moving money as easy as 1,2,3.
HiFX Ltd ABN 54 106 779 953/ AFSL No 240914
Contact HiFX
Facebook:
Linkedin:
https://www.linkedin.com/company/hifx-new-zealand

Next in Business, Science, and Tech

Services lead GDP growth
By: Statistics New Zealand
Letter to Immigration Minister From Early Harvesting Growers
By: One Plus One
Scientists discover one of world’s oldest bird species
By: Canterbury Museum
Helping regions fill skills shortages and Kiwis come first
By: New Zealand Government
Report: Govt Inquiry into Auckland Fuel Supply Disruption
By: Inquiry into The Auckland Fuel Supply Disruption
NZ economy grows 0.5% in June quarter, beating expectations
By: BusinessDesk
Don’t blame President Trump for slowing economy
By: New Zealand National Party
Labour's big government economic policies continue to fail
By: ACT New Zealand
Kiwi economic growth slows. We need fiscal caffeination
By: Kiwibank
Weakening economic growth shows need for tax cuts
By: New Zealand Taxpayers' Union
Employers pen open letter to Minister in ‘desperation’
By: New Zealand National Party
Dismissive Minister out of touch with reality
By: ACT New Zealand
Labour issues in booming sector
By: Bayleys
Migrant Workers Association criticises work visa overhaul
By: RNZ
More detail needed on migrant worker policy
By: BusinessDesk
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media