HiFX Morning Update 01/07

The NZDUSD opens at 0.6770

The NZDUSD is down across the board this morning. It recorded new 5 year lows overnight.

Yesterday's ANZ Business Confidence data release makes it 2 months in a row that pessimism over NZ’s economy has increased. The agriculture sector was the most gloomy with 28.9% of respondents seeing worse times ahead.

Mixed data out of the US overnight. Home price growth in Major US metropolitan areas slowed, but Consumer Confidence is continuing to rebound, jumping much more than expected.

In Europe, the Greeks will default on their debt obligations in a few hours. However Athens have audaciously submitted a new 2 year bail out application for a 29bn Eur loan package in return for more debt relief.

The GBP had a good night after reports that UK GDP rose by .40% in the first quarter.

US equity markets were quiet overnight while European equity markets were lower. Shanghai rebounded over 5% : Dow +.13%, S&P 500 +.27%, FTSE -1.50%, DAX -1.25%, CAC -1.63%, Nikkei +.63%, Shanghai +5.24%, Hang Seng +1.08%.

Gold price is down at $1172.30 an ounce, Oil (WTI) is down over 2% at $58.33 barrel.

The current indicative mid-rates are:

NZDUSD 0.6770 -1.3%
NZDEUR 0.6075 -0.6%
NZDGBP 0.4308 -1.3%
NZDJPY 82.85 -1.6%
NZDAUD 0.8782 -1.6%
NZDCAD 0.8455 -0.6%

No major NZ data releases today.

Watch out for Chinese Manufacturing PMI data at 1.45pm

ENDS

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