HiFX Morning Update, December 14, 2017

HiFX Morning Update, December 14, 2017

The NZDUSD opens at 0.6991 (mid-rate) this morning.

The NZD has put in another strong performance ahead of this morning’s long awaited FOMC statement.

Earlier this morning the USD came under pressure after the US Labour Department CPI data report showed core consumer prices missed economists’ forecasts in November. Core prices which exclude food and energy edged up by 0.1% in November following a 0.2% rise in October and just shy of the 0.2% forecast. This softening of core inflation will cast doubts on the Fed’s ability to hike rates early in 2018.

The UK Office for National Statistics employment report showed unemployment remained at its lowest level since the March to May quarter of 1975. The unemployment rate has spent the last two quarters from May through to October at 4.3%. The reading was in line with expectations.

Direction will obviously be driven by this morning’s announcement, with a hike fully priced in it will be the Fed’s forecast on future hikes that will dictate USD direction.

Global equity markets remain mixed - Dow +0.56%, S&P 500 +0.28%, FTSE -0.05%, DAX -0.44%, CAC -0.51%, Nikkei -0.47%, Shanghai +0.68%.

Gold prices have retraced yesterday’s fall up 0.6% to $1,245 an ounce. WTI Crude Oil prices have slipped lower, down 1.2% trading at $56.71 a barrel.

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