The Opening Bell: Where currencies start on Friday, August 18, 2017

By Dan Bell

The NZDUSD opens at 0.7294 (mid-rate) this morning.

The NZD has traded a 115 point or 1.6% range this week against the USD finishing moderately lower from where it started.

NZ producer output prices (the prices producers get for their goods and services) released yesterday morning rose 1.3% in the June 2017 quarter, while input prices (the costs producers pay) rose 1.4%. In the June quarter, meat product manufacturing and dairy product manufacturing rose 6.9% and 3.4% respectively.

In the week ending August 12, the advance figure for seasonally adjusted U.S. Initial Claims was 232,000, a decrease of 12,000 from the previous week’s unrevised level of 244,000. The 4 week moving average was 240,500.

Manufacturing conditions in the U.S. region continued to advance in August, according to firms responding to this month’s Manufacturing Business Outlook Survey. The diffusion index of current activity, fell slightly from 19.5 in July to 18.9 in August.

U.S. factory output fell in July, pulled down by tumbling auto production. The Federal Reserve says factory production dropped 0.1% last month. Overall industrial production, which adds output by mines and utilities, rose 0.2%.

In July 2017, the quantity bought (volume) in U.K. Retail Sales increased by 0.3% compared with the previous month, due to strong sales in food stores at 1.5%; recovering from a fall of 1.1% in June 2017.

Euro Area annual inflation (CPI) was 1.3% in July 2017, stable compared with June 2017. In July 2016 the rate was 0.2%. European Union annual inflation was 1.5% in July 2017, also stable compared to June 2017. A year earlier the rate was 0.2%.

Overnight data releases tonight include FOMC Member Kaplan speaking, German Current Account and PPI, Canadian CPI, and for the USD preliminary University of Michigan Consumer Sentiment and Inflation Expectations.

Global equity markets are negative except China:  Dow -0.87%, S&P 500 -1.20%, FTSE -0.61%, DAX -0.49%, CAC -0.57%, Nikkei -0.14%, Shanghai +0.68%.

Gold prices are up $7 or 0.5% trading at $1,289 an ounce .WTI Crude Oil prices are up 0.5% trading at $47.09 a barrel.

Current indicative rates:

NZDUSD       0.7294      -0.3%
NZDEUR       0.6209      -0.1%
NZDGBP       0.5663      -0.2%
NZDJPY         79.95       -0.8%
NZDAUD       0.9213      -0.2%
NZDCAD       0.9232      -0.1%
GBPNZD       1.7649       0.2%


 

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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »

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