HiFX Morning Update June 22 2016

HiFX Morning Update June 22 2016

The NZDUSD opens at 0.7130 (mid-rate) this morning.

The NZD has continued to push higher overnight, with the NZDUSD posting a new 2016 high of 0.7165.

Last night Federal Reserve Chair Janet Yellen reiterated a "cautious approach" on interest rates "remains appropriate" amid "considerable uncertainty" about the economic outlook. Yellen also mentioned that Thursday’s “Brexit” vote could have "significant economic repercussions" and pose risks to financial stability if the UK decide to leave the European Union.

European Central Bank President Mario Draghi, Speaking to the European Parliamentary committee in Brussels also spoke of the risks posed by “Brexit” and the fragile state of the global economy. Draghi also added the ECB are “ready to act by using all the instruments available within our mandate, if necessary, to achieve our objective. In particular, the ECB is ready for all contingencies following the UK's EU referendum,".

German economic sentiment surprised to the upside rising to 19.2 in June (a 10 month high) from 6.4 in May. Economists had expected the index to edge lower to 4.8 points.

Global equity markets are slightly higher - Dow +0.19%, S&P 500 +0.42%, FTSE +0.36%, DAX +0.54%, CAC +0.61%, Nikkei +1.28%, Shanghai -0.35%.

Gold prices are down 1.6% trading at $1,268 an ounce, WTI Crude Oil has fallen overnight currently down 0.7% at $48.85 a barrel.

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