HiFX Morning Update, September 16 2016

HiFX Morning Update, September 16 2016

NZDUSD 0.7313 0.4%
NZDEUR 0.6503 0.5%
NZDGBP 0.5521 0.4%
NZDJPY 74.69 0.2%
NZDAUD 0.9735 -0.1%
NZDCAD 0.9622 0.1%

The NZD starts the morning up 0.4% at 0.7313

Yesterday's GDP figure came in lower than the market was expecting at 0.9%, still growth on an annual basis of 3.6%. The initial drop in the NZD has been short lived as there was a barrage of news overnight for the USD. Retail sales dropped 0.3% and the PPI (an inflation measure) was flat. This news puts pressure on US CPI due out tomorrow, it’s also an issue for third quarter GDP results.

It was a conservative approach from central banks last night keeping currencies in check by giving little away. The Bank of England kept its monetary policy unchanged and left the door open for more easing later in the year if necessary, although near term indicators have been better than expected.

Global equity markets positive in Europe and the US and down in Asia- Dow +0.99, S&P 500 +1.01.%, FTSE +0.97%, DAX +0.43%, CAC -0.32%, Nikkei +1.26%, Shanghai -0.68%.
Gold is slightly lower at 1314.50 an ounce, WTI Crude Oil is slightly higher +0.7% at $44.44 a barrel.

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