Scoop has an Ethical Paywall
HiFX Morning Update, May 2 2018
The NZDUSD opens at 0.6995 (mid-rate) this morning.
The USD continues to climb ahead of tomorrow morning's FOMC monetary policy statement. The US Dollar index (DXY) which measures the value of the USD against a basket of currencies, is threatening to break up through its 2018 high of 92.64, peaking earlier this morning at 92.57.
The USD pulled back from its highs after this morning’s US economic data releases disappointed. The ISM reported its Purchasing Managers’ Index dropped to 57.3 in April from 59.3 in March. Economists had expected the index to inch down to 58.3. Construction spending confounded economists who had forecast spending to increase by 0.5% in March, with the Commerce Department reporting spending fell by 1.7% to an annual rate of $1.285 trillion.
The GBP is the worst performing of the G10 currencies as once again their economic data disappointed. Last night survey data from IHS Markit showed UK manufacturing activity expanded at the slowest pace in 17 months in April. The Purchasing Managers' Index which had been expected to edge down to 54.8 from a 5.9 reading in March plummeted to 53.9 leading to a sharp fall in the pound.
Yesterday’s RBA monetary policy statement held few surprises and as such has had little effect on the NZDAUD cross rate. The key driver for the NZD will be this morning’s quarterly employment report. Economists are forecasting unemployment to edge down to 4.4% from 4.5% in Q4, while the Labour Cost Index is expected to inch up by 0.5% following a 0.4% increase in Q4.
Tomorrow mornings FOMC statement will be released at 6:00am.
Global equity markets are mixed- Dow -0.65%, S&P 500 -0.20%, FTSE +0.15%, DAX Closed CAC Closed, Nikkei +0.18%, Shanghai +0.23%.
Gold prices are down 1.0%, trading at $1,305 an ounce. WTI Crude Oil prices are sharply lower down 2.2% overnight currently trading at $67.14 a barrel.
ends
HiFX
International Payments Expertly Done
HiFX is one of the largest foreign exchange and international payment specialists in the world, managing over $30 billion on behalf of over 100,000 clients worldwide every year.
Large enough to undertake the biggest transactions, yet small enough to care about each and every one – send and receive overseas payments and manage your account anytime, anywhere. HiFX gives you the flexibility you need to transfer money quickly and easily via a secure online platform 24 hours a day, seven days a week - making moving money as easy as 1,2,3.
HiFX Ltd ABN 54 106 779 953/ AFSL No 240914
Business Canterbury: Urges Council To Cut Costs, Not Ambition For City
Wellington Airport: On Track For Net Zero Emissions By 2028
Landcare Research: ANZAC Gall Fly Release Promises Natural Solution To Weed Threat
NZ Anti-Vivisection Society: Auckland Rat Lovers Unite!
University of Canterbury: $1.35 Million Grant To Study Lion-like Jumping Spiders
Federated Farmers: Government Ends War On Farming
