HiFX Morning Update – November 7 2016

HiFX Morning Update – November 7 2016

NZDUSD 0.7325 0.0%
NZDEUR 0.6581 -0.2%
NZDGBP 0.5865 -0.3%
NZDJPY 75.65 0.3%
NZDAUD 0.9545 0.0%
NZDCAD 0.9821 0.1%

The NZDUSD opens at 0.7325 (mid-rate) this morning.

With the US elections looming and no clear front runner, Friday’sbetter than expected payrolls report failed to bolster the USD. The NZD continued to trade tight ranges against all rivals into Fridays close and is likely to continue to do so until Wednesday’s US election result is known.

The US non-farm-payrolls added another 161k jobs in October with upward revisions totalling 44k jobs for the previous two months. The unemployment rate edged lower printing at 4.9% in October from 5% in September. This latest report will add to what is already a strong case for the Federal Reserve to hike rates when the committee next meets in December.

Outside of the US election Thursday’s RBNZ monetary policy statement will be the key driver for the NZD, with the forward market pricing in an 80% chance of a 0.25% rate cut.

Global equity markets closed out the week broadly lower -Dow -0.24%, S&P 500 -0.17%, FTSE -1.43%, DAX -0.65%, CAC -0.78%, Nikkei -1.34%, Shanghai -0.12%.

Gold prices gained 2.2% over the course of the week closing on Friday at $1,303 an ounce WTI Crude Oil fell 9.5% over the course of the week closing on Friday at $44.07 a barrel.

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