HiFX Morning Update, June 7 2017

HiFX Morning Update, June 7 2017

The NZDUSD opens at 0.7186 (mid-rate) this morning.

The JPY has been the best performing currency over the past 24hrs as investors offload risk in favour of safe havens. The shift to safe havens started yesterday afternoon on the announcement that a number of Middle Eastern countries had severed ties with Qatar amid accusations it is supporting terrorism. Risk is likely to dominate markets over the next 48hrs with investors weary of Thursday’s European Central Bank meeting, along with the UK election and former FBI Director James Comey's congressional testimony.

Overnight European data releases came in mixed with retail sales printing just below the expected 0.2% result with a 0.1% gain, while investor confidence spiking to a near 10 year high in June. The index now sits at 28.4 up from 27.4 in May and ahead of the forecast 27.6 result.

The latest GDT auction produced another rise in prices with the index rising 0.6%, with skim milk powder prices spiking 7.9% offsetting a 2.9% fall in the price of whole milk powder which fell to an average of $3,143 a tonne.

This morning’s manufacturing data is likely to have little effect on the NZD while the NZDAUD cross rate direction will be dictated by the release of Australia’s Q1 GDP report due out at 13:30 this afternoon.

Global equity markets have edged lower Dow -0.05%, S&P 500 -0.05%, FTSE -0.01%, DAX -1.04%, CAC -0.73%, Nikkei -0.95% Shanghai +0.34%.

Gold prices have gained 1% overnight currently, trading at $1,291 an ounce .WTI Crude Oil prices have bounced, currently up 1.8% at $48.09 a barrel.

ends

© Scoop Media