HiFX Morning Update, August 30 2017

HiFX Morning Update, August 30 2017

NZDUSD 0.7251 -0.1%
NZDEUR 0.6049 -0.2%
NZDGBP 0.5615 0.1%
NZDJPY 79.62 0.6%
NZDAUD 0.9115 0.1%
NZDCAD 0.9093 0.3%
GBPNZD 1.7804 0.5%

The NZDUSD opens at 0.7251 (mid-rate) this morning.

The NZD is up against all the majors except the EUR & USD.

Hurricane Harvey is the worst to hit the U.S. in over 50 years. The costs of Hurricane Harvey could climb as high as $100 billion, according to at least one estimate. While it will still take weeks for the full extent of the damage to become clear, the catastrophic flooding — and a recovery effort that is likely to take years — will almost certainly have an impact on some critical upcoming deadlines for lawmakers in D.C.

White House and congressional GOP officials are expected to begin discussing emergency funding for disaster relief soon. This is very significant as those discussions could present challenges for other items on President Trump’s agenda, from tax reform to a border wall with Mexico.

The reaction in the currency markets was a weaker USD against the Yen and Euro, although the USD strengthened 0.1% versus the NZD & AUD. The USDJPY posted a 4 month low at 108.27, and EUR’s strength continued posting a 1.2070 high versus the USD, the first test above 1.2000 since Jan 2015.

The U.S. Conference Board Consumer Confidence Index, which had increased in July, improved further in August. The Index now stands at 122.9, up from 120.0 in July. The Present Situation Index increased from 145.4 to 151.2, while the Expectations Index rose marginally from 103.0 last month to 104.0.

Global equity markets are mixed: Dow +0.19%, S&P 500 +0.11%, FTSE -0.87%, DAX -1.46%, CAC -0.94%, Nikkei -0.45%, Shanghai +0.08%.

Gold prices fell 0.3% in the past 24 hours after posting a $1326 high, currently trading at $1,306 an ounce. WTI Crude Oil prices are modestly lower, down 0.5% trading at $46.47 a barrel.

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