HiFX Morning Update, August 15 2016

HiFX Morning Update, August 15 2016

NZDUSD 0.7191 -0.2%
NZDEUR 0.6438 -0.5%
NZDGBP 0.5559 0.0%
NZDJPY 72.71 -1.1%
NZDAUD 0.9388 0.3%
NZDCAD 0.9318 -0.3%

The NZDUSD opens at 0.7191 (mid-rate) this morning.

The NZD traded tight ranges against all its major rivals on Friday failing to make headway after a stellar retail sales report.

Friday night’s US economic data releases fell short of economist’s expectations with retails sales, PPI, and consumer sentiment all disappointing.

In stark contrast to last Friday’s labour data, an unexpected fall in both the retails sales (-0.3% vs. exp +0.2%) and consumer sentiment (90.4 vs. exp 91.5) on top a disappointing producer price index report, which recorded its largest fall in nearly a year, should cool any expectations of an interest rate hike from the Federal Reserve anytime soon.

The week ahead for the NZD will be dominated firstly by Wednesday’s GDT auction followed by our employment report before investors switch their attention to Thursday morning’s FOMC meeting minutes.

Global equity markets finished the week mixed - Dow +0.2%, S&P 500 -0.08%, FTSE +0.02%, DAX -0.27%, CAC -0.08%, Nikkei +1.10%, Shanghai +1.60%.

Gold prices was little changed on Friday closing out the week at $1,335 an ounce, WTI Crude Oil was up more than 6% over the course of the week closing on Friday at $44.49 a barrel

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