HiFX Morning Update, August 10 2016

HiFX Morning Update, August 10 2016

NZDUSD 0.7163 0.2%
NZDEUR 0.6438 0.0%
NZDGBP 0.5504 0.5%
NZDJPY 72.85 -0.4%
NZDAUD 0.9332 0.0%
NZDCAD 0.9399 0.0%

The NZDUSD opens at 0.7163 (mid-rate) this morning.

Rising commodity prices including whole milk powder futures has seen the NZD hold onto yesterday’s gains. September whole milk powder futures are up almost 20% since the 19th July auction.

The overnight US data releases delivered mixed results with US labour productivity in the second quarter unexpectedly declining, while in the same quarter labour costs raced higher. Economists had expected productivity to climb by 0.5% and instead the report showed a surprise fall of 0.5%, in contrast economists labour costs to climbed 2.0% in the same quarter ahead of the expected 1.8% rise.

UK manufacturing production for the month of June declined by 0.3% following on from the 0.6% fall in May, economists had expected a flat result. The news was not all bad though with Industrial Production m/m unexpectedly rising 0.1% in June following a 0.6% fall in May.

In the absence of any domestic data releases today investors will be positioning their books for tomorrow morning’s RBNZ statement.

Global equity markets remain mixed - Dow -0.10%, S&P 500 -0.08%, FTSE +0.62%, DAX +2.50%, CAC +1.19%, Nikkei +0.69%, Shanghai +0.71%.

Gold prices are slightly higher, up 0.4% at $1,341 an ounce, WTI Crude Oil has given back yesterday’s gains currently down 1%, trading at $42.59 a barrel

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