XE Morning Update - May 1 2019

NZDUSD 0.6680 0.2%
NZDEUR 0.5957 -0.1%
NZDGBP 0.5123 -0.6%
NZDJPY 74.43 -0.1%
NZDAUD 0.9473 0.3%
NZDCAD 0.8949 -0.1%
GBPNZD 1.9520 0.6%

The NZDUSD opens higher at 0.6680 this morning.

The NZD gained on the back of a weaker USD and stronger EUR.

US economic was data mixed on the eve of the US Federal Reserve interest rate decision. US labour costs increased steadily during Q1, pointing to moderate inflation pressures even as the labour market tightens, while consumer confidence exceeded forecasts. However, manufacturing data disappointed.

The EUR strengthened after Q1 economic growth figures for the euro zone beat market expectations and indicated a recovery from the slump suffered in the back half of 2018.

The US is ramping up pressure to reach a trade deal with China in the coming weeks, with the US reportedly prepared to walk away.

The US Federal Reserve has begun their 2-day interest rate meeting. During their last meeting the Fed dropped its forecasts for any rate increases, halting a 3-year tightening campaign. Despite Fed independence, President Trump tweeted the US economy would go “up like a rocket” if the Fed lowered interest rates by 1% and resumed quantitative easing.

The GBP surged higher after reports the UK Government has made substantive moves in Brexit talks with the opposition Labour party and that the tone of their discussions has improved.

NZ employment data hits the wires at 10:45am. These will be closely watched by the markets and will influence the likelihood, or not, of an RNBZ interest rate cut on 8th May.

Global equity markets were mixed on the day - Dow +0.1%, S&P 500 -0.7%, FTSE -0.3%, DAX +0.1%, CAC +0.1%, Nikkei -0.2%, Shanghai +0.5%.

Gold prices were little changed at USD$1,291 an ounce as the USD rallied. WTI Crude Oil prices are trading at US$63.89 per barrel.

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