HiFX Morning Update, February 1 2017

HiFX Morning Update, February 1 2017

The NZDUSD opens at 0.7323 (mid-rate) this morning.

Broad USD weakness has helped the NZDUSD push up through 73 cents with the currency pair touching 0.7350 a level traded in early November 2016.
The USD, US bond yields and global equity markets are all trading lower in reaction to Donald Trump’s new executive orders on immigration.

Overnight US economic data releases disappointed with both consumer confidence and the Chicago business barometer fall short of economist’s estimates. Following December’s fifteen-year high US consumer confidence pulled back in the month of January with the Conference Board report showing the index fell to 111.8 from December’s revised 113.3 reading. The Chicago business barometer recorded its lowest level since May 2016 with the index falling to 50.3 in January from a revised 53.9 reading in December.

The Euro-zone economy grew at 0.5% q/q in the December quarter last year with rising energy prices pushing inflation to a four year high. Economists had expected the growth rate to improve to 0.4% from the third quarter's previously estimated 0.3%expansion.

The key driver for the NZD today will be this morning’s quarterly employment report with economists expecting the number of employed people to increase by 0.8% while the unemployment rate is expected to edge down to 4.8% from 4.9% in the September quarter.

Global equity markets are a sea of red - Dow -0.91%, S&P 500 -0.94%, FTSE -0.92%, DAX -1.12%, CAC -1.14%, Nikkei -0.51%, Shanghai Closed.

Gold prices are have edged higher currently up 0.4% $1,196 an ounce, WTI Crude Oil has slipped lower overnight currently down 1.1% at $52.60 a barrel.

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