HiFX Morning Update, November 15 2016

HiFX Morning Update, November 15 2016

NZDUSD 0.7101 0.2%
NZDEUR 0.6607 1.0%
NZDGBP 0.5682 1.0%
NZDJPY 76.85 1.7%
NZDAUD 0.9411 -0.1%
NZDCAD 0.9631 0.5%

The NZDUSD opens at 0.7101 (mid-rate) this morning.

The NZD has put in a reasonable performance in light of the earthquakes, making steady gains against all the majors. The big mover overnight has been the JPY which has continued its fall despite a better than expected GDP report.

The US dollar index broke up through 100 overnight for the first time in 12mths as markets price in a December rate hike from the Fed as of this morning there is an 81% chance of a hike priced in compared to 71% at the same time last week.

Overnight tonight, the latest GDT auction should help underpin the NZD, with the futures pricing suggesting another increase circa 5%. Tomorrow’s scheduled retail sales data release has been postponed in light of yesterday’s earthquakes.

Crude oil prices have plunged overnight after the IEA warned about a worsening supply glut, while OPEC’s monthly report revealed oil production for October increased to 33.64m barrels, That's up by 240,000 bpd from September.

Global equity markets have edged higher - Dow +0.05%, S&P 500 +0.03%, FTSE +0.34%, DAX +0.24%, CAC +0.43%, Nikkei +1.71%, Shanghai +0.45%.

Gold prices have fallen 3.6% overnight currently trading at $1,222 an ounce WTI Crude Oil has plunged 3.8% overnight currently trading at $43.06 a barrel.

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