HiFX morning Update June 15 2018

The NZDUSD opens at 0.6987 (mid-rate) this morning.

A dovish ECB has seen the EUR hit hard, while the USD is stronger across the board after the FOMC statement yesterday morning. The Kiwi has put in a mixed performance in the last 24 hours – lower against the USD and JPY, but higher against the other majors.

The Kiwi has traded an 81 point or 1.15% range this week against the USD, which was also Thursday’s date range. While the NZD/USD has moved lower this week we would have expected a bigger move to the downside, which is surely coming in the weeks ahead after the Fed rate hike.

The NZD/AUD has traded a 130 point range or 1.41% this week – surging to a high of 0.9338 from 0.9208.

ECB’s Draghi signalled that Net Asset purchases currently at a monthly pace of EUR 30 billion, will end at the end of September 2018, subject to incoming data, then at EUR 15 billion to the end of December 2018. The Governing Council decided that the interest rate on the main refinancing operations, marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.

In the week ending June 9, the advance figure for seasonally adjusted U.S. Initial Claims was 218,000, a decrease of 4,000 from the previous week's unrevised level of 222,000. The 4-week moving average was 224,250.
U.S. Retail Sales posted the biggest gain in six months jumping 0.8% last month ahead of the market consensus of a 0.4% rise. Retail Sales were up 5.9% from May 2017.

U.K. Retail Sales increased 1.3% in May 2018 from April and up 3.9% from May 2017

Global equity remain mixed: Dow -0.23%, S&P 500 +0.19%, FTSE +0.81%, DAX +1.68%, CAC +1.39%, Nikkei -0.99%, Shanghai -0.18%.

Gold prices have rallied 0.7% trading at $1,302 an ounce. WTI Crude Oil prices surged 0.9% higher trading at $66.97 a barrel.

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