HiFX Morning Update - December 1 2016

HiFX Morning Update - December 1 2016

NZDUSD 0.7089 -0.5%
NZDEUR 0.6693 0.0%
NZDGBP 0.5683 -0.3%
NZDJPY 80.95 1.0%
NZDAUD 0.9586 0.6%
NZDCAD 0.9511 -0.5%

The NZDUSD opens at 0.7089 (mid-rate) this morning.

A sharp fall in Chinese commodity futures combined with better than expected US economic data releases has helped push the NZD back below 71 US cents.

The Sharp fall in commodity prices in China was a direct result of a spike in short-term Chinese interest rates along with new regulatory measures to reduce speculation on futures markets

Overnight US Private Sector Job Growth increased by 216k jobs in November and ahead of the expected 160k increase, this along with stronger than expected personal income, pending home sales and Chicago-area business activity which spiked to its highest level since early 2015 will increase investors expectations of a Fed hike on the 15th of December.

Crude futures surged back towards $50 a barrel after OPEC agreed to reduce its output from 33.6 million barrels a day by 1.2 million barrels. The agreement which was reached during last night’s summit in Vienna is the first major change since November 2014 when members agreed to lift all output quotas so its members could compete with a global boom in oil production.

Global equity markets have edged higher - Dow +0.35%, S&P 500 +0.08%, FTSE +0.17%, DAX +0.19%, CAC +0.59%, Nikkei +0.01%, Shanghai -1.00%.

Gold prices have slipped lower currently down 1.3% at $1,172 an ounce WTI Crude Oil have surged higher following the OPEC announcement currently up 8.5% at $49.14 a barrel.

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