HiFX morning Update, October 4 2018

The NZDUSD opens at 0.6529 (mid-rate) this morning.

The USD is back on the charge and the Dow Jones index is trading at a new record high, just shy of 27k following stronger-than-expected economic data overnight.

The US dollar along with their equities moved higher overnight after the latest ADP private sector employment report showed employment spiked by 230k jobs in September well ahead of the expected 185k increase. August’s previously reported 163 jobs increase was also upwardly revised to 168k.

In what was very much an unexpected result the ISM non-manufacturing index climbed to 61.6 in September, an increase from August’s 58.5 result. Economists had expected the index to edge down to 58.0. the unexpected increase is a new record high for the index.

The EUR received a boost late yesterday afternoon Bloomberg reported that the Italian government had pledged to cut its 2021 deficit to 2.0% having earlier this week forecast the to run a deficit 2.4%from next year through to 2021. Italy’s economy minister speaking at a meeting of Italy’s largest employers confirmed that the fiscal shortfall would be put on a downward path after next year.

This morning the British pound pushed higher as Theresa May declared Britain's post-Brexit future is "full of promise" at her Conservative Party Conference. Mrs May vowed the "resilience and ingenuity of the British people will see us through" negotiations with Brussels, and that although she still believes a good Brexit agreement can be reached "Britain isn't afraid to leave with no deal if we had to".

Equity markets remain mixed, - Dow +0.51%, S&P 500 +0.41%, FTSE +0.48%, DAX Closed%, CAC +0.43%, Nikkei -0.66%, Shanghai Closed.

Gold prices edged lower, down 0.3% trading at $1,198 an ounce. WTI Crude Oil prices are again on the rise, up 1.3% trading at $75.85 a barrel.

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