HiFX Morning Update, April 20, 2018

HiFX Morning Update, April 20, 2018

The NZDUSD opens at 0.7268 (mid-rate) this morning.

A combination of broad USD strength along with a pull pack in our annualised inflation has seen the NZD underperform overnight.

The GBP is the worst performing of the G10 currencies with weaker than expected retail sales adding further downward pressure on the currency following a disappointing inflation report. Retail sales for the month of March fell 1.2% m/m after increasing 0.8% in February. Sales were expected to decline by 0.6%.

US economic data releases with the exception of the Philadelphia manufacturing index printed in line with expectations. The Philly Fed reported its manufacturing index edged higher with a reading of 23.2 in April up from 22.3 in March. Economists had expected the index to fall to 20.1.

US equity markets are down and bond prices are under pressure as yield on the ten-year note increased to 2.914%, up 4.7 basis points. This is the highest closing level in almost two months when yields hit a multi-year high.

A lack of economic data during our trading day should see currencies trade tight ranges heading into the weekend.

Global equity markets are mixed - Dow -0.43%, S&P 500 -0.77%, FTSE +0.16%, DAX -0.19%, CAC +0.21%, Nikkei +0.15%, Shanghai +0.84%.

Gold prices have edged lower, down 0.2% trading at $1,344 an ounce. WTI Crude Oil prices are back at $68.25 a barrel, having spiked as high as $69.50 overnight.

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