NZDUSD 0.6789 1.8%
NZDEUR 0.5926 1.4%
NZDGBP 0.5166 1.4%
NZDJPY 76.93 1.7%
NZDAUD 0.9325 0.9%
NZDCAD 0.8898 1.6%
GBPNZD 1.9357 -1.4%
.
Not surprisingly, following yesterday’s stellar employment report the NZD has been the standout performer over the past
24 hours, and has surged higher against all its trading partners. Direction for the dollar from here will be dictated by
this morning’s RBNZ monetary policy statement.
Yesterday’s midterm elections result has divided Congress with the Democrats taking control of the House of
Representatives and the Republicans gaining a greater majority in the Senate and has resulted in a sharp fall for the
USD and a spike in US equities. Yield on the 10-year Treasury note which traded as high as 3.25% as early predictions
had the Republicans ahead in both elections is now trading back below 3.20% following the result. A divided Congress is
typically seen as a good thing as neither party is able to make sweeping changes to legislation and although President
Trump is unlikely to pass further tax cuts, the current tax cuts that he has put in place cannot be reversed.
Although a mid-November EU summit is now looking unlikely. Theresa May has called for an emergency cabinet meeting with
the hope of signing off on a Brexit divorce deal, and meeting with her EU counterparts before the end of the month.
Global equity markets remain mixed, - Dow +1.34%, S 500 +1.54%, FTSE +1.09%, DAX +0.83%, CAC +1.24%, Nikkei -0.28%, Shanghai -0.68%.
Gold prices are unchanged trading at $1,226 an ounce. WTI Crude Oil have fallen further, down 0.3% trading at $61.55 a
barrel.
ends