HiFX Morning Update, August 8 2017
The NZDUSD opens at 0.7355 (mid-rate) this morning.
In a delayed reaction to yesterday’s RBNZ inflation expectations the NZD has weakened against all its trading rivals and is the worst performing of the G10 currencies over the past 24h hrs.
The latest quarterly RBNZ survey showed those surveyed now see annual inflation at 1.77%, down from 1.92% in one year, while the headline two year expectation has been dialled back from 2.17% to 2.09%. Q2 inflation as reported last month sits at 1.7%.
Overnight German industrial production unexpectedly decreased in June with the Destatis report showing industrial output decreased by 1.1%m/m, following an upwardly revised 1.2% increase in May. The June result is the first fall in production this year and surprised economists who had forecast a small increase of 0.2%.
With very little in the way of economic data releases, ahead of Thursday’s RBNZ monetary policy statement the NZD is likely to trade tight ranges with a bias to the downside.
Global equity markets with the exception on the DAX have edged higher - Dow +0.10%, S&P 500 +0.10%, FTSE +0.27%, DAX -0.33%, CAC +0.09%, Nikkei +0.52%, Shanghai +0.53%.
Gold prices are little changed trading at $1,258 an ounce .WTI Crude Oil prices have edged lower, down 0.7%, trading at $49.22 a barrel.