HiFX Morning Update, March 2 2017

HiFX Morning Update, March 2 2017

The NZDUSD opens at 0.7149 (mid-rate) this morning.

With the exception of the Japanese Yen the NZD has been the worst performing currency over the past 24 hours. The NZDUSD traded to a low of 0.7103 a level last seen in mid-January. Hawkish comments from several Fed officials boosted market expectations for the Fed to hike rates at the next FOMC meeting on March 15th.

The NZDAUD cross rate fell sharply yesterday following a better than expected Q4 GDP report out of Australia, with economist’s forecasting Q4 growth at 0.7% the 1.1% result has seen the AUD outperform all its rivals with the cross rate now sitting at 4 ½ month lows.

Global equity markets have had a positive reaction to President Donald Trump’s address to Congress. Although Trump’s speech concentrated on the “big picture” and lacked details on his plans for tax reform and replacing Obamacare. The positive reaction was driven by Trump’s call for a $1 trillion infrastructure plan and a potential willingness to compromise on immigration.

Overnight US economic data releases were mixed with the ISM manufacturing PMI printing ahead of expectations, while monthly construction spending and the ISM manufacturing prices index data came up short of economist’s forecasts.

Global equity markets are sharply higher- Dow +1.5%%, S&P +1.46%, FTSE +1.64%, DAX +1.97%, CAC +2.10%, Nikkei +1.44%, Shanghai +0.16%.

Gold prices are down 1% currently trading at $1,245 an ounce, WTI Crude Oil has clawed back yesterday’s fall currently up 1.2% trading at $53.91 a barrel.

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