HiFX morning Update June 31 2018

The NZDUSD opens at 0.6825 (mid-rate) this morning.

The NZD is the strongest performing of the G10 currencies inching higher against all its rivals in what has been a subdued start to the week.

The Japanese yen has slipped lower overnight, as investors await the Bank of Japan's monetary policy announcement due for release sometime this afternoon.

Last night the BOJ intervened in the bond market for the third time in a week in an effort to cap bond yields within its target range as investors position there books on rumours that the central bank is about make changes to its stimulus programme. The intervention came after yield on 10-year Japanese government bonds moved above 0.11%, its highest level since February 2017.

Euro-zone economic confidence continues to decline with the European Commission data showing the index edged down to 112.1 in July, following on from June’s reading of 112.3. The index is now at its lowest level since august 2017.

In the only US data of note, the National Association of Realtors (NAR) reported its pending home sales index rose 0.9% to 106.9 in June following on from May’s 105.9 reading. Economists had expected the index to increase by 0.4%.

Domestic highlights for the NZD today will be this morning’s building consents followed by this afternoons business confidence data releases.

Global equity markets have started the week on the back foot, - Dow -0.26%, S&P 500 -0.36%, FTSE -0.01%, DAX -0.48%, CAC -0.37%, Nikkei -0.74%, Shanghai -0.16%.

Gold prices are little changed trading at $1,223 an ounce WTI Crude Oil prices are up 1.9% trading at $69.05 a barrel.

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