HiFX Morning Update, November 20, 2017

HiFX Morning Update, November 20, 2017

The NZDUSD opens at 0.6810 (mid-rate) this morning.

The NZD under performed on Friday losing ground against all its rivals with the NZDUSD trading below 0.6800 for the first time since June 2016. Further weakness in commodity prices, with the CRB index falling 2% over the course of the week, along with weaker than expected retail sales and industrial production out of China are the catalysts for the move.

Despite stronger than expected housing data Friday the USD gave back some of this week’s gains as news that subpoenas had been issued to over a dozen top Trump campaign officials calling for documents and emails related to Russia came to light.

ECB President Draghi speaking at the Frankfurt European Banking Congress admitted that "An ample degree of monetary stimulus remains necessary for underlying inflation pressures to build up and support headline inflation over the medium term."

Key domestic drivers for the NZD this week will be Tuesday evening’s GDT auction with importers hoping for an increase in dairy prices after three consecutive falls, and Thursday’s quarterly retail sales report.

Global equity markets with the exception of the Nikkei softened on Friday, - Dow -0.08%, S&P 500 -0.26%, FTSE -0.08%, DAX -0.41%, CAC -0.32%, Nikkei +0.20%, Shanghai -0.48%.

Gold prices pushed higher on Friday, up 1.3% closing out the week at $1,294 an ounce, WTI Crude Oil prices rallied on Friday, up 2.4% closing out the week at $56.55 a barrel.

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