HiFX morning Update, January 29 2019

NZDUSD 0.6832
NZDEUR 0.5975
NZDGBP 0.5191
NZDJPY 74.68
NZDAUD 0.9532
NZDCAD 0.9057
GBPNZD 1.9264

The NZDUSD opens at 0.6832 (mid-rate) this morning.

The USD is weakening as we head towards Thursday mornings FOMC statement when the Federal Reserve are widely expected to keep rates on hold.

Global growth concerns, the lack of progress in the ongoing US-China trade war and the paused federal government shutdown are likely to see the Fed chairman Jerome Powell deliver a dovish statement. As announced last year all policy statements will be followed by a post-meeting news conference but there will be no updated rate or economic projections from policymakers.

Global equity markets are back in the red with European and UK markets selling off on Brexit uncertainty and plummeting oil prices while some disappointing earnings reports led by Caterpillar and Trump’s comments that there could be another government shutdown if lawmakers fail to sanction funds for the wall by mid-February have seen US stocks fall sharply.

Overnight, tonight UK MPs are due to vote on a number of amendments to Theresa May’s Brexit plan including an alternative plan to the Irish backstop for avoiding a hard border in Ireland.

The key driver for the NZD during our trading session will be this morning’s trade balance due for release at 10:45.

Global equity markets have turned negative, Dow -1.45%, S&P 500 -1.23%, FTSE -0.91%, DAX -0.63%, CAC -0.76%, Nikkei -0.60%, Shanghai +0.18%.

Gold prices surged to a seven-month high on Friday and are still holding above $1,300 an ounce. WTI Crude Oil prices have fallen sharply overnight, currently down 4.0% trading at $51.88 a barrel.

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