HiFX morning Update, November 2, 2018

NZDUSD 0.6655 2.1%
NZDEUR 0.5831 1.2%
NZDGBP 0.5117 0.2%
NZDJPY 75.01 1.8%
NZDAUD 0.9239 0.2%
NZDCAD 0.8712 1.5%
GBPNZD 1.9537 -0.2%

For a flightless bird, the Kiwi has taken off, up just over 2% against the USD. A combination of poor US data, positive Brexit sentiment and perhaps most importantly, a healthy dose of short covering, has seen the NZD pop back up towards the September highs.

The big news out of the UK yesterday was the headline “PM May strikes Brexit deal with EU on Financial Services”. This saw a decent move up for the Pound. As is the habit, recent headlines have come out saying its only speculation, but even so, this has probably been the most positive Brexit news for some time, and traders are liking it.

The BOE is giving the RBA a run for its money with the least exciting interest rate announcements, and did not disappoint overnight, leaving rates unchanged.

In light of all that has gone on, we still have a lot of data to come out. Australian retail sales at 1:30 NZT is the biggest throughout the day, but overnight we have the all-important Non-Farm Employment Change. Whilst potentially not being as big a mover as it used to, it is still wise to keep an eye out, and this move today could give an opportunity to take some risk off the table going into it.

Global equity markets are up again, - Dow +0.71%, S&P 500 +0.81%, FTSE -0.19%, DAX +0.18%, CAC -0.15%, Nikkei -1.06%, Shanghai +0.13%.

Gold prices are up strongly trading at $1,236 an ounce a 1.8% increase. WTI Crude Oil continues its selloff, down 3.9% since this time yesterday, trading at $63.66 a barrel.

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