HiFX Morning Update 02/07

The NZDUSD opens at 0.6745.

The NZDUSD is moderately lower overnight on broader US strength after positive employment and PMI Data, however the kiwi is moderately higher against other majors.

Yesterday's Australian Building Approvals were better than expected up 2.4% on the month and up 17.6% over the last 12 months.

The US Private sector Employment rose more than anticipated in June. ADP said employment rose 237,000 jobs in June following an upwardly revised increase of 203,000 in May. The ISM said its purchasing managers index rose to 53.5 in June from 52.8 in May, with a reading above 50 indicating an increase in manufacturing activity. Economists had expected the index to edge up to 53.2.

Meanwhile, Greek Prime Minister Alexis Tsipras sent a letter indicating he will accept the demands made by the country's creditors over the weekend with only a handful of minor changes.

Greece failed to make a 1.55 billion euro payment to the IMF by a midnight deadline. Despite the missed payment, the IMF does not consider Greece to be in default, just in arrears. However, German Chancellor Angela Merkel has reiterated her position that any new talks will have to wait until after the Greek referendum on Sunday.

Global equity markets were up overnight except Shanghai which gave back yesterday’s gains of 5% : Dow +0.60%, S&P 500 +0.52%, FTSE +1.34%, DAX +2.15%, CAC +1.94%, Nikkei +0.46%, Shanghai -5.23%, Hang Seng +1.08%.

Gold price is down at $1167.93 an ounce, Oil (WTI) is up 2% at $59.47 barrel.

The current indicative mid-rates are:

NZDUSD 0.6745 -0.4%
NZDEUR 0.6105 +0.5%
NZDGBP 0.4320 +0.3%
NZDJPY 83.05 +0.2%
NZDAUD 0.8810 +0.3%
NZDCAD 0.8485 +0.4%

ENDS

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