HiFX Morning Update, August 31 2017

HiFX Morning Update, August 31 2017

NZDUSD 0.7197 -0.7%
NZDEUR 0.6052 0.0%
NZDGBP 0.5569 -0.8%
NZDJPY 79.41 -0.3%
NZDAUD 0.9107 -0.1%
NZDCAD 0.9081 -0.1%
GBPNZD 1.7951 0.5%

The NZDUSD opens at 0.7197 (mid-rate) this morning.

The Kiwi is lower after better than expected U.S. GDP and Jobs data.

U.S. Private Sector employment increased by 237,000 jobs from July to August, well ahead of the 185,000 market expectation. The release comes two days ahead of the government's closely watched nonfarm payrolls report. Private payrolls for August jumped at their fastest pace in five months thanks in part to strong gains in construction and manufacturing jobs.

According to the second estimate, U.S. GDP increased at an annualised rate of 3.0% for the second quarter of 2017. This was an increase from the first estimate of 2.6% and above the consensus forecast of 2.7% while the economy expanded at the fastest pace since the first quarter of 2015. There was an upward revision to personal consumption expenditure growth to 3.3% from 2.8% previously. Investment made a positive contribution to the quarter with strong growth in non-residential capital spending. There was also a slightly larger net positive contribution from trade for the quarter.

U.S. commercial crude oil inventories decreased by 5.4 million barrels from the previous week. U.S. crude oil refinery inputs averaged over 17.7 million barrels per day during the week ending August 25, 2017, 264,000 barrels per day more than the previous week’s average. Refineries operated at 96.6% of their operable capacity last week.

Canada's current account deficit (on a seasonally adjusted basis) widened by $3.4 billion in the second quarter to $16.3 billion, as the deficit on international trade in goods expanded

In August 2017, the Swiss Economic Barometer fell by 3.9 points to 104.1, but still well above the long term average. The reading indicates the Swiss economy should continue to grow at above average rates.

Global equity markets are higher except China: Dow +0.13%, S&P 500 +0.38%, FTSE +0.38%, DAX +0.47%, CAC +0.49%, Nikkei 0.74%, Shanghai -0.74%.

Gold prices are up 0.2% trading at $1,308 an ounce. WTI Crude Oil prices are sharply lower, down 1.0% trading at $46.02 a barrel.

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