HiFX Morning Update. September 23 2016

HiFX Morning Update. September 23 2016

NZDUSD 0.7303 -0.3%
NZDEUR 0.6517 -0.7%
NZDGBP 0.5585 -1.0%
NZDJPY 73.63 -0.2%
NZDAUD 0.9557 -1.0%
NZDCAD 0.9534 -1.2

The NZDUSD opens at 0.7303 (mid-rate) this morning.

Yesterday was all about the central banks both here and in the U.S. The decision by the Federal Reserve to maintain interest rates initially saw USD weakness however it was largely predicted and remained contained. The RBNZ OCR decision to leave the cash rate at 2% again was largely expected but the accompanying statement was enough to halt the NZD’s progress and see it under perform overnight. The Kiwi is currently trading down against all its major trading partners.

The U.S. House Price Index had little effect on markets overnight.

Elsewhere the ECB has said it will remain alert and ready to act if warranted to achieve its price stability objective and that the global outlook on economic activity remains on the downside.

Bank of England member Forbs mention of no need for further stimulus and talk of a revised UK economic outlook being required helped the GBP to strengthen overnight.

Manufacturing PMI data from Japan along with Inflation and Retail Sales data out of Canada are the main events leading into the weekend.

Global equity markets are in positive territory - Dow +0.54%, S&P 500 +0.65%, FTSE +1.18%, DAX +2.70%, CAC +3.12%, Nikkei +1.91%, Shanghai +0.54%.
Gold prices have gained 0.8% to be trading at $1,337 an ounce, WTI Crude Oil is up 2.85% currently trading at $45.34 a barrel.

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