HiFX morning Update June 1 2018

The NZDUSD opens at 0.7000 (mid-rate) this morning.

Trading was mixed overnight and most of the major currencies failed to make any meaningful moves. Market participants seem to be biding their time ahead of tonight's much anticipated monthly jobs report out of the US, and awaiting further direction from US Treasury markets following a lackluster session.

The Canadian Dollar was the big mover, and despite printing a better than expected GDP number at 0.3% vs 0.2% expected (month on month), was sold-off sharply and ends the day down 0.6% against the US Dollar. The sell-off in CAD follows continued weakness in oil prices, and stern words from Justin Trudeau, Canada's Prime minister, saying the new US steel and aluminum tariffs are totally unacceptable, and that Canada will retaliate.

U.S. economic data was better than expected for the most part, however had a relatively muted impact on financial markets. The USD put in a mixed performance against the majors, and US equities finish the session lower. Core PCE Price Index, Personal Spending, Unemployment Claims and Chicago PMI all printed numbers slightly better than economists had forecasted, while Pending Home Sales were lower than expected for the month.

Oil prices remain on the back foot after being sold aggressively earlier in the week, despite Crude Oil Inventory numbers coming in lower than expected at -3.6M barrels, vs the -0.4M decline forecasted.

Overnight data tonight includes the US Non-Farm Payrolls, Unemployment Rate, Average Hourly Earnings and ISM Manufacturing PMI. There is little of interest elsewhere, aside from Manufacturing MPI numbers out of the UK.

Global equities: Dow -1.0%, S&P 500 -0.6%, FTSE -0.15%, DAX -1.1%, CAC -0.3%, Nikkei -0.8%, Shanghai +1.3%.

Gold prices are slightly lower at $1,299 an ounce. WTI Crude Oil remains offered, trading at 66.98 a barrel and down 1.8% for the session.

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