XE Morning Update - August 23, 2019

NZDUSD 0.6366 -0.6%
NZDEUR 0.5742 -0.6%
NZDGBP 0.5193 -1.6%
NZDJPY 67.74 -0.8%
NZDAUD 0.9421 -0.2%
NZDCAD 0.8465 -0.5%
GBPNZD 1.9254 1.6%

The NZD has had a bad day, drifting down to its lowest level since 2016 against the USD. We have the Fed meeting over the weekend at “Jackson Hole”, a symposium where economists, academics and the like discuss all things Finance, including Monetary Policy. The Fed’s chair Powell will give a speech, and this is going to be very closely picked over to get clues on the next rate cuts. This can be market moving, so the rate on the open at Monday could well be quite different to where we close.

The Pound had a very good night, with Germanys Angela Merkel commenting “What one can achieve in three or two years can also be achieved in 30 days”. The market ran with this, thinking that if there was a solution to the Irish backstop in particular, and both sides are willing and able to implement it quickly, then a deal could still be on by October 31st. Merkel has since walked it back a little saying she was talking generally and only being polite, but for now the Pound is holding onto its gains.

NZ has Retail Sales for the quarter out at 10:45 this morning. Generally this is fairly variable, nonetheless the market does still react, so definitely something to keep an eye on.

Global equity are broadly higher, - Dow +0.19%, S&P 500 +0.01%, FTSE -1.05%, DAX -0.47%, CAC -0.87%, Nikkei 0.05%, Shanghai +0.11%.

Gold prices are little changed trading at $1,509 an ounce. WTI Crude Oil prices are lower trading at $55.31 a barrel.

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