HiFX Morning Update, August 19 2016

HiFX Morning Update, August 19 2016

NZDUSD 0.7293 0.7%
NZDEUR 0.6423 0.1%
NZDGBP 0.5541 -0.2%
NZDJPY 72.90 0.4%
NZDAUD 0.9480 0.1%
NZDCAD 0.9310 0.0%

The NZDUSD opens at 0.7293 (mid-rate) this morning.

The NZD rallied strongly from yesterday’s open of 0.7242 to an overnight high of 0.7310. The Kiwi finishes the week up 1.4% from Monday's 0.7191 starting price.

U.S. applications for unemployment benefits was little changed last week, holding near four-decade lows that highlight strength in the job market. Jobless claims fell by 4,000 to 262,000 in the week ended Aug. 13. Filings have been below 300,000 for 76 straight weeks, the longest stretch since 1970.

U.S. Firms responding to the Manufacturing Business Outlook Survey suggest that growth was positive but tenuous this month. The diffusion index for current general activity moved from a negative reading to a marginally positive reading, while the indicators for new orders and employment suggested continued general weakness in business conditions. Of the current broad indicators, the diffusion index for shipments recorded the strongest reading.

The index for current manufacturing activity in the region rose 5 points to only 2.0 in August, as the share of firms reporting an increase in activity (35 percent) barely exceeded the share reporting a decrease (33 percent). This is only the third positive reading of the index in the current year.

There is no data out tonight for the U.S. Hitting the tapes we have German PPI UK Public Sector Net Borrowing, CAD Core CPI, Core Retail sales, CPI & Retail sales

Global equity markets are broadly higher: Dow +0.04%, S&P 500 +0.15%, FTSE +0.14%, DAX +0.62%, CAC +0.44%, Nikkei -1.55%, Shanghai -0.17%.

Gold prices are up $3 or 0.2% at $1,352 an ounce, WTI Crude Oil has rallied strongly 3.6%, trading at $48.17 a barrel

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