April 11, 2019 — 3 min read
The AUD opened down at 0.7120, and the NZD opened down at 0.6727.
The Aussie sold off overnight, off 0.7%. The move lower was on the back of US strength, with US PPI coming in at a strong 0.6%, beating expectations of 0.3%. An increase in the Produce Price Index can bode well for future increases in the CPI, and therefore is closely watched. What has also helped, is that unemployment claims came in lower again, and the 196,000 claims was the new lowest level since 1969.
The Kiwi also tested its recent lows overnight, just managing to hold at the 0.6700 level. For how much longer, is really the question though, and a break below there would have the Kiwi lose altitude quickly.
It makes you wonder, with inflation circa 2%, GDP Growth equal highest since 2005, and employment hasn’t been higher since the '60’s, why is the Fed so Dovish? If trends turn even slightly neutral, it could be all the catalyst needed for the USD to come surging back.
In a surprise announcement out of the UK, after saying they would not extend the Brexit deadline, Article 50 has been extended another 6 months. (For now). This news was met with general ambivalence from the market, but it does remove some of the near-term risk.
Global equity markets were mixed on the day - Dow -0.17%, S&P 500 -0.12%, FTSE -0.05%, DAX +0.25%, CAC +0.66%, Nikkei 0.11%, Shanghai -1.6%.
Gold prices continue to slide, down another .3% to USD$1,294 an ounce.
WTI Crude Oil prices are off 1.5% to US$63.59 per barrel.
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