HiFX Morning Update, February 21 2018

HiFX Morning Update, February 21 2018

The NZDUSD opens at 0.7348 (mid-rate) this morning.

For the first time in 2018 and breaking three consecutive rises in global dairy prices, this morning’s GDT auction resulted in a marginal fall in the price index. Volumes also dipped with 20,256MT of products selling at this morning’s auction down from 22,197MT at the previous event. Whole milk powder (WMP) prices edged up 0.3% to an average price of US$3,246/MT, however skimmed milk powder prices fell sharply, down 3% to an average price of US$1,832/MT.

Germany's economic confidence for February declined less-than-expected with the ZEW survey showing sentiment indicator fell from 20.4 in January to 17.8 in February. The result was better than expected with economists expecting the indicator to fall to 16.0. The indicator remains well below the long-term average of 23.7.

Overnight PMI data out of Europe and the US is expected is expected to remain solid and should have little effect on currencies ahead of tomorrow mornings FOMC meeting minutes data release.

Global equity markets are mixed - Dow -0.37%, S&P 500 +0.12%, FTSE -0.01%, DAX +0.83%, CAC +0.64%, Nikkei -1.01%, Shanghai Closed.

Gold prices are down 1.1% trading at $1,332 an ounce. WTI Crude Oil prices are inching lower, down 0.4% over the past 24 hours, trading at $62.16 a barrel.

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