HiFX Morning Update August 23 2017

HiFX Morning Update

NZDUSD 0.7278 -0.6%
NZDEUR 0.6195 -0.1%
NZDGBP 0.5678 0.0%
NZDJPY 79.69 0.1%
NZDAUD 0.9209 -0.2%
NZDCAD 0.9143 -0.7%
GBPNZD 1.7611 -0.4%

The NZDUSD opens at 0.7278 (mid-rate) this morning.

The USD has reversed yesterday’s fall and has been the strongest performer of the G10 currencies. In the absence of any US economic data releases the move appears to be driven by weaker than expected German economic sentiment.

German economic confidence in August fell for the third consecutive month, and now sits at a 10 month low. The ZEW Indicator of Economic Sentiment now sits at 10 a sharp fall from July’s 17.5 reading. Economists had expected the indicator to pull back to 14.8.

The UK Office for National Statistics reported UK public sector net borrowing in July turned to surplus for the first time since 2002. The report which excludes public sector banks recorded a GBP0.2 billion surplus. Expectations were for borrowing to increase by GBP1 billion for the month.

Again we are without any economic drivers during our trading day, with investors’ attention likely to be focused of ECB President Draghi’s speech later this evening along with overnight European and US PMI data releases.

Global equity markets broadly higher - Dow +0.73%, S&P 500 +0.81%, FTSE +0.86%, DAX +1.36%, CAC +0.87%, Nikkei -0.05%, Shanghai +0.10%.

Gold prices have given back yesterday’s gains, down 0.6% trading at $1,284 an ounce .WTI Crude Oil prices are up 1% trading at $47.61 a barrel.

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