HiFX Morning Update, August 31 2015

HiFX Morning Update, August 31 2015

The NZDUSD opens at 0.6472 (mid-rate) this morning.

After what was a tumultuous start to the week, the closing 24hrs was relatively calm with risk appetite picking up again following China’s stock market rebound, and comments from this weekend’s Jackson Hole meeting with the Fed, ECB and BoE all agreeing that “stronger growth will pull inflation higher”.

The U.S. data releases on Friday were largely weaker than expected with both personal spending and consumer sentiment printing slightly worse than economists expectations. Personal spending increased by 0.3% (exp 0.4%) for the second consecutive month, while the consumer sentiment index for August came in at 91.9 (exp 93.0) down from 93.1 in July.

On the local front Wednesday’s GDT auction will be closely monitored by investors, while this week’s U.S employment numbers may well decide whether or not the Fed raise rates in September.

Global equity markets had a mixed close to the week - Dow -0.07%, S&P 500 +0.06%, FTSE +0.89%, DAX -0.17%, CAC +0.36%, Nikkei +3.03%, Shanghai +4.82%.

Gold prices rallied $11 on Friday but still closed out the week down 1% at $1134 an ounce, WTI Crude Oil held onto Friday’s gains closing the week at $45.22 a barrel.

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