HiFX Morning Update. November 21 2016

HiFX Morning Update. November 21 2016

NZDUSD 0.7005 -0.2%
NZDEUR 0.6605 0.0%
NZDGBP 0.5669 0.3%
NZDJPY 77.62 0.5%
NZDAUD 0.9561 0.9%
NZDCAD 0.9448 -0.3%

The NZDUSD opens at 0.7005 (mid-rate) this morning.

The NZD managed to keep its head just above 0.7 US cents on Friday as broad USD strength continued. The US dollar index (DXY) has now posted gains in ten consecutive sessions, and now sits at 13yr highs. The NZD fared better than most after Fonterra raised its forecast milk powder payout from $5.25 to $6.00, and leaked Retail Sales and PPI reports, which were both ahead of economists estimates.

On Friday European Central Bank President Mario Draghi voiced his concerns over the Euro-zone’s moderate recovery sighting geopolitical risks, weak inflation and the high reliance on monetary policy stimulus as factors in why the economy is still struggling. Mr Draghi went on to say "the ECB will continue to act, as warranted, by using all the instruments available within our mandate to secure a sustained convergence of inflation towards a level below, but close to 2 percent."

The week ahead looks light on data (if the leaked domestic reports are correct) and with the US celebrating Thanksgiving at the end of the week investors will be focused on the US Durable Goods Orders and the FOMC Meeting Minutes both due to be released on Thursday, for direction.

Global equity markets slipped lower on Friday - Dow -0.19%, S&P 500 -0.24%, FTSE -0.28%, DAX -0.20%, CAC -0.52%, Nikkei +0.59%, Shanghai -0.49%.

Gold prices fell 1.3% over the course of the week closing on Friday at $1,208 an ounce WTI Crude Oil was little changed on Friday closing at $45.69 a barrel having gained 5% over the course of the week.

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