HiFX Morning Update - August 4 2016

HiFX Morning Update - August 4 2016

The NZDUSD opens at 0.7152 (mid-rate) this morning.

The NZD has fallen against all its major trading partners over the past 24hrs as investors turn their attention to next week’s RBNZ rate statement. The Reserve Bank will have noted that the Australian Dollar appreciated after the RBA cut their key interest rate in line with expectations earlier this week, and with that in mind investors are now positioning their books for the possibility of a larger cut.

The US Automatic Data Processing (ADP) report recorded an increase in private-sector employment of 179k jobs for the month of July with the June numbers also upwardly revised from 172k jobs to 176k jobs. Economists had expected employment to increase by 170k jobs.

The US, ISM Non-Manufacturing PMI declined more than expected in July, after spiking to a seven-month-high of 56.5 in June, economists had expected the index to fall to 56.0 instead the report showed the index declined to 55.5.

Euro-zone retails sales m/m printed in line with expectations, remaining flat after increasing by 0.4% the previous month.

Overnight, tonight the Bank of England is widely expected to cut interest rate to a new record low. If the BOE does decide to cut it will be the first interest rate move since the rate was set at 0.5% back in march 2009.

Oil prices spiked 3% overnight after the U.S. government reported a larger-than-expected gasoline inventory drawdown which offset the greater than expected crude oil inventories.

Global equity markets are mixed - Dow +0.04%, S&P 500 +0.07%, FTSE -0.17%, DAX +0.26%, CAC -0.16%, Nikkei -1.88%, Shanghai +0.24%.

Gold prices have given back yesterday’s gains down 0.7% currently trading at $1357 an ounce, WTI Crude Oil spiked higher overnight currently 3.4% at $40.84 a barrel.

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