HiFX Morning Update, April 20 2017

HiFX Morning Update, April 20 2017

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

The NZDUSD failed to break above 0.7050 during our trading day, yesterday and opens this morning on the brink of trading back below 0.70. There was very little in the way of economic data overnight and the move lower looks to be on the back of USD strength which has seen US Treasury bond yields push higher. The 10-year T-Bond yield is currently up 2% on the day.

Overnight UK MP’s backed Theresa May’s motion to hold a snap election on the 8th June by a massive margin of 522 to 13. A two-thirds majority was required to pass the motion.

Crude oil prices have plummeted on the back of an increase in production and a smaller-than-expected decline in US crude inventories. This morning’s Energy Information Administration (EIA) report showed a decline in crude oil stocks of 1mill barrels on the week, slightly less than estimates, while concerns over rising oil output in the US has been the main catalyst for the fall in prices.

This morning’s CPI data release due to hit the tapes at 10:45 will be the key driver for the NZD today. Economists are expecting to see a strong gain of 0.8% for Q1 2017 after Q4 2016 edged up 0.4% slightly ahead of the expected 0.3% result.

European equity markets are mixed - Dow -0.37%, S&P 500 -0.06%, FTSE -0.46%, DAX +0.13%, CAC +0.27%, Nikkei +0.07%, Shanghai -0.81%.

Gold prices are down 0.6% currently trading at $1,282 an ounce .WTI Crude Oil has plunged overnight currently down 4.3%% trading at $50.25 a barrel.

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