Daily Market Commentary 17th November 2021

Finally some good news from US economy, with Retail Sales surging and Industrial and Manufacturing Production both turning positive. US Retail Sales were stronger than expected, jumping 1.7% for the month, while industrial and manufacturing both turned strongly positive. This was a boost to flagging equity market, as the consumer has been under extreme pressure with rising prices and inflation, in recent times. US Bond Yields continue to reflect pressure on the fed to remove monetary stimulus, strengthening the US Dollar. The EUR fell back to 1.1320, while the GBP held 1.3420, after stronger than expected Employment numbers.

The rising reserve pushed commodity currencies lower, with the AUD testing 0.7300, on the downside, while the NZD crashed below 0.7000. The resurgent US Dollar has forced these currencies lower, with expectations for Fed action to address aggressive inflation dominating the economic and political narrative. NZ Dairy Prices were lower, although remaining positive, while markets continue to watch CPI/PPI globally.