HiFX Morning Update, July 25 2016

HiFX Morning Update, July 25 2016

NZDUSD 0.6995 0.0%
NZDEUR 0.6369 0.3%
NZDGBP 0.5325 0.5%
NZDJPY 74.35 0.5%
NZDAUD 0.9365 0.3%
NZDCAD 0.9185 0.3%

The NZDUSD opens at 0.6990 (mid-rate) this morning.

The NZD ended the week trading a tight range either side of 0.7000 against the USD while edging higher against of its other major trading partners.

The USD index rose to a four month high late on Friday after both the Euro-zone and UK reported weak private sector growth. The Euro-zone private sector expanded at the slowest pace in 18mths in July following the “Brexit” referendum. The flash composite output index fell to 52.9 in July from 53.1 in June. The UK private sector activity was even more disappointing with the flash composite output index contracting at its fastest pace since 2009. The index tumbled to 47.7 in July from 52.4 in June (a score below 50 indicates contraction).

There is very little in the way of domestic data releases this week and direction should be decided by off shore announcements, with Thursday mornings FOMC statement being the highlight.

Global equity markets closed out the week mixed - Dow +0.29%, S&P 500 +0.46%, FTSE +0.46%, DAX -0.09%, CAC +0.11%, Nikkei -1.09%, Shanghai -0.86%.

Gold prices fell 0.6% over the course of the week closing on Friday at $1,322 an ounce, WTI Crude Oil fell 1% on Friday closing out the week at $44.19 a barrel.

ends

© Scoop Media