HiFX morning Update, February 21 2019

The NZDUSD opens at 0.6844 (mid-rate) this morning.

As expected with the US enjoying a long weekend and an absence of tier-one economic data markets have had a subdued start to the trading week.

The NZD which pushed higher during our trading day is now trading marginally lower than where it opened yesterday morning on what appears to be profit taking. With no domestic data during our trading day direction for the NZD should be dictated by tonight’s global dairy auction with futures pricing suggesting prices are like to continue to push higher.

The British pound strengthened overnight after the odds of an extension of Article 50 increased after seven anti-Brexit labour MPs split from the party and will now take their place in parliament as independents. The move severely lessens the chances of Labour forcing a general election to renegotiate Brexit.

This afternoon the RBA monetary policy meeting minutes are expected to hold few surprises and should have little effect on the Australian dollar.

Global equity markets are mixed, - Dow Closed, S&P 500 Closed, FTSE -0.24%, DAX -0.01%, CAC +0.30%, Nikkei +1.82%, Shanghai +2.68%.

Gold prices are little changed trading at $1,325 an ounce. WTI Crude Oil prices continue to climb up 0.7% trading at $56.37 a barrel.

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