HiFX morning Update, October10, 2018

The NZD opens at 0.6463

In a pretty quiet last few days, the Kiwi has consolidated with no major news coming out. The Government did post a 5.5 Billion dollar Surplus, which was larger than expected. A lot of the Governments forecast spending has been delayed though, so this figure comes higher than it otherwise would. Not a tier 1 data point, it has not been widely reported in financial markets, though the Kiwi seems to be getting a bid on the back of it this morning.

Out of Ireland, their Foreign Minister Coveney came out saying there is a “Strong chance of a Brexit deal”. This saw quite a jump in the EUR and GBP, which were pared back as the UK Brexit minister commented that “Differences still remain” and that they are “Expediting the preparations for a no deal”. This really highlights how messy the market is going to be before we get a decision either way round Brexit.

GDP data is out of the UK at 21:30 NZD, though the US PPI Data would probably be expected to be a larger mover at 01:30.

Global Equity markets are basically flat: Dow -0.06%, S&P 500 +0.03%, FTSE 0.06%, DAX +0.25%, CAC +0.35%, Nikkei -1.32%, Shanghai +0.17%.

Gold prices are up 0.5% overnight trading at $1,185 an ounce. WTI Crude Oil prices have also increased, up 1.6% trading at $75.05 a barrel.

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