HiFX Morning Update, July 24 2017

HiFX Morning Update, July 24 2017

The NZDUSD opens at 0.7352 (mid-rate) this morning.

The NZDUSD continued to push higher on Friday closing at 0.7454 a level last seen in September 2016, with Tuesday’s disappointing inflation report all but forgotten the NZD has since made steady gains against all of its rivals.

The big mover on Friday was the AUD with the NZD surging back above 0.9400 as comments from RBA Deputy Governor Guy Debelle led to an AUD “sell off”. Dr Debelle while speaking at a business lunch in Adelaide told guests that "No significance should be read into the fact the neutral rate was discussed at this particular meeting," and that the fact the cash rate was significantly below the RBA's theoretical neutral rate was not that unusual. It has been that way since 2012. The NZDAUD cross rate had traded as low as 0.9215 following Tuesday’s CPI data release.

The week ahead offers very little in the way of domestic economic data releases with direction for the NZD likely to be dictated by overseas developments, the pick of which should be Wednesday’s Australian inflation report followed overnight by UK GDP and the latest FOMC monetary policy statement.

Global equity markets closed out the week broadly lower - Dow -0.15%, S&P 500 -0.03%, FTSE -0.47%, DAX -1.66%, CAC 0.00%, Nikkei -0.22%, Shanghai -0.21%.

Gold prices were up 2% over the course of the week closing on Friday at $1,254 an ounce .WTI Crude Oil prices were, down 1.5% on Friday and down 2% over the course of the week to close on Friday at $45.77 a barrel.

ends

© Scoop Media