HiFX Morning Update, November 6 2018

HiFX Morning Update, November 6 2018

The NZDUSD opens at 0.6911 (mid-rate) this morning.

Currency markets had a quiet close to the week with investors looking to Friday night’s US economic data releases for direction.

Friday’s economic data releases sent mixed messages to investors with the latest employment report falling short of economists’ forecasts while economic activity in the non-manufacturing sector grew at a faster pace anticipated. US non-farm jobs increased by 261k in October with September’s 33k fall in jobs was revised to an 18k rise. Economists had expected an addition of 312k jobs while September’s result was initially reported as a 33k fall in jobs. A fall in the unemployment rate, down to 4.1% from 4.2% in September was largely due to a 765k fall in people looking for work.

The Institute for Supply Management reported its non-manufacturing index edged up to 60.1 in October after a 59.8 reading in September, The index had been forecast to pull back to 58.6.

Ahead of Thursday’s RBNZ statement, when the Reserve Bank are widely tipped to leave the OCR unchanged at a record low of 1.75%, direction for the NZD will be influenced by this afternoon’s quarterly inflation expectation report.

Global equity markets with the exception of the Shanghai edged higher on Friday - Dow +0.01%, S&P 500 +0.30%, FTSE +0.07%, DAX +0.28%, CAC +0.14%, Nikkei +0.53%, Shanghai -0.34%.

Gold prices fell 0.6% on Friday, closing out the week at $1,269 an ounce, WTI Crude Oil prices surged higher on Friday, up 2.2% closing out the week close to 2yr highs at $55.64 a barrel.

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