HiFX Morning Update, January 30 2017

HiFX Morning Update, January 30 2017

The NZD is holding on from last week attempt to push higher and opens at 0.7265 against the USD.

After last week’s strong CPI figure coming in at 0.4% the NZD hasn’t been able to hold on to recent highs and is consolidating on support near 0.7250.
It is Anniversary Day in Auckland/Northland today and Chinese New Year continues so expect to see lower volume and quite possibly some extended moves. Market orders might be useful with the wider ranges that can occur on public holidays.

Over the weekend US GDP was below expectations coming in at 1.9% with the market expecting 2.1% this annual growth is the slowest since 2011 meaning there are still structural changes required. This week sees the Federal Reserve meet for the first time since Donald Trumps inauguration. Markets are waiting to see whether policy makers are ready to stimulate Trumps plans and trade negations and or adjust their rate outlook.

Continuing with central bank meetings this week, Tuesday the Japanese and European central banks meet releasing inflation, unemployment and Draghi speaking from the ECB and Monetary Policy and Rates from the Bank of Japan.

World equity markets closed mixed Shanghai +0.31% Nikkei +0.34 FTSE +0.32% with the rest of the world marginally lower DAX -0.29% CAC40 -0.56% S&P -0.09%
Gold is trading at USD 1,191

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