The NZDUSD opens at 0.7005 (mid-rate) this morning.
Markets lacked direction for much of yesterday as investors awaited the outcome of the Singapore summit. Although both leaders hailed the success of their meeting, describing it as the first step towards a “bright future” and signing an agreement with North Korea agreeing to denuclearise in exchange for security guarantees the lack of detail has created scepticism among many analysts.
This morning’s US inflation data equalled economists’ estimates with consumer prices in the month of May increasing by 0.2%. Core prices which exclude both food and energy prices increased by 0.2% modestly ahead of the forecast 0.1% increase.
German investor confidence disappointed once again with the ZEW economic sentiment index plummeting by 7.9 points to -16.1 points (its lowest level since June 2012). Economists had expected the index to drop to -14 points.
The UK Office for National Statistics employment report showed the unemployment rate remained unchanged at 4.2% its lowest level since 1975.
Tomorrow morning the Federal Reserve are expected to raise their cash rate by 25 basis points with investors focusing on the Fed’s dot-plot for any indications that the Fed may be considering a further two hikes at back end of this year.
Global equity are mixed- Dow -0.22%, S&P 500 +0.05%, FTSE -0.43%, DAX +0.00%, CAC -0.38%, Nikkei +0.33%, Shanghai +0.89%.
Gold prices are inching lower, down 0.3% trading at $1,295 an ounce. WTI Crude Oil prices have edged higher, up 0.2% trading at $66.22 a barrel.