HiFX morning Update, October 18, 2018

The NZDUSD opens at 0.6559 (mid-rate) this morning.

The USD is trading moderately higher following the release of the FOMC meeting minutes from their September meeting.

Fed officials “anticipated that further gradual increases in the target range for the federal funds rate would most likely be consistent with a sustained economic expansion, strong labour market conditions, and inflation near 2 percent over the medium term," with some members indicating that there might be a period where the Fed will need to go beyond normalization of rates and into a more restrictive stance. The Fed has now raised interest rates three times this year and appears on track to hike again in December.

This morning Eurostat data revealed Euro-zone consumer price inflation accelerated by 2.1% in September exceeding the ECB’s target of below 2%, and in line with economists’ forecasts.

September consumer price inflation in the UK came up shy of economists’ estimates with the Office for National Statistics reporting inflation slowed to 2.4% down from 2.7% in August and below economists’ estimates of 2.6%.

This afternoon the NZDAUD cross rate will be dictated by Australia’s monthly employment report due for release at 13:30.

Global Equity markets are mixed, - Dow -0.21%, S&P 500 -0.05%, FTSE -0.07%, DAX -0.52%, CAC -0.54%, Nikkei +1.29%, Shanghai +0.60%.

Gold prices are little changed at $1,223 an ounce. WTI Crude Oil prices have fallen sharply, down 2.3% trading at $70.09 a barrel.

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