XE Morning Update December 20, 2019

XE Morning Update

NZDUSD 0.6604 0.4%
NZDEUR 0.5936 0.4%
NZDGBP 0.5069 0.9%
NZDJPY 72.12 0.1%
NZDAUD 0.9594 0.0%
NZDCAD 0.8667 0.5%
GBPNZD 1.9726 -0.9%

The Kiwi opens at 0.6604

The NZD has enjoyed some strength on the back of solid GDP data, coming in at 0.7% for the quarter. This was more than expected, however last quarter was revised back somewhat, so the follow through was muted. Across the ditch the AUD also gained ground on the back of solid employment data. With the Australian housing market showing some signs of recovery, and now employment picking up, an interest rate cut next year seems a lower chance to me than the 40% the market is currently pricing in for February.

In the UK the Bank of England voted to keep rates on hold. This has been the pattern for the last few years, while waiting for Brexit to get resolved. Recently however there has been a unanimous 9 votes agreeing with the decision. This time it was only 7, with 2 members voting for a cut. In the short term this has seen the Pound sell off, and in the longer term threatens to make future meetings more exciting.

In sad news, this will be the last morning report for 2019, with it resuming again early in the new year. From all of us at XE we would like to thank you for your support over the year and wish you a very Merry Christmas.

Global equity markets remain mixed, - Dow +0.34%, S&P 500 +0.36%, FTSE +0.44%, DAX -0.08%, CAC +0.21%, Nikkei -0.29%, Shanghai +0.00%

Gold prices are up slightly to $1,484 an ounce. WTI Crude Oil prices have inched higher, up 0.3% trading at 61.19 a barrel.

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