HiFX morning Update, March 14, 2019

NZDUSD 0.6854 -0.2%
NZDEUR 0.6048 -0.5%
NZDGBP 0.5173 -1.4%
NZDJPY 76.13 -0.3%
NZDAUD 0.9665 -0.3%
NZDCAD 0.9116 -0.7%
GBPNZD 1.9331 1.4%

The NZD weakened after REINZ house sales plunged 9.5% (year on year) and NZ Food Price Index (FRI) rose a less than anticipate 0.4% in February.

The FPI feeds into CPI data and is further evidence that inflation remains benign.

US Producer Price Index barely rose in February, while headline Durable Goods Orders came in stronger than forecasts, although the ‘core’ number disappointed. This data adds to the view the US Federal Reserve will maintain its ‘patient’ stance on any future interest rate hikes.

The GBP jumped higher after the UK Parliament voted against a ‘no-deal’ exit from the EU – however, the vote was extremely close 312 versus 308! The Brexit circus moves on to Thursday (UK time) where they will vote on whether to support a delay of Brexit in the hope of securing better terms. Even if the UK do agree to kick the can down the road, there is no guarantee the EU will agree to the extension.

Australian consumer sentiment data, released yesterday, slumped to its lowest in over a year in March – adding to signs of economic weakness and boosting calls for a Reserve Bank of Australia rate cut.

There is no data on the domestic calendar today.

Global equity markets were mostly higher on the day - Dow +0.4%, S&P 500 +0.7%, FTSE +0.1%, DAX +0.4%, CAC +0.7%, Nikkei +1.1%, Shanghai -1.1%.

Gold prices jumped 0.9% to USD$1,311 an ounce. WTI Crude Oil prices surged 2.7% to US$58.45 per barrel as US crude inventories unexpectedly fell, Venezuela’s crude exports stalled, and Saudi Arabia indicated it would cut exports.

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