Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

HiFX Morning Update, May 18 2018

The NZDUSD opens lower at 0.6874 this morning.

The USD strengthened, and NZDUSD fell, after US bond yields (interest rates) rose to 7-year high, and amid concerns over political developments in Italy could negatively impact euro zone political stability.

Rising US bond yields suggest a more optimistic outlook for the US economy – reinforced by the overnight release of much better than expected Philly Fed Manufacturing Index. This supports expectations that the US Federal Reserve will continue to lift interest rates – the USD generally performs wells in such an environment.

NZ Budget was released yesterday. There was nothing earth-shattering in the announcement and had limited impact on the NZD.

US Investment Bank, Morgan Stanley, forecast the NZDUSD to fall another 4% by end of 2018 as high NZ household debt levels leave the economy vulnerable to higher US interest rates.

The NZDAUD dipped to a 3-month low of 0.9142 overnight.

The GBP staged a short rally on reports that Britain was prepared to stay in the EU’s customs union beyond a Brexit transitional arrangement.

There is no data on the domestic calendar today.

Global equity markets were higher on the day – Dow +0.1%, S&P500 0.2%, FTSE +0.7%, DAX +0.8%, CAC +1.0%, Nikkei +0.5%, Shanghai -0.5%.

Gold prices gained 0.2% to USD$1,291 an ounce. Oil prices (WTI) rose 0.1% to USD$71.56 per barrel.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Still Gaining: More Migrants Head Back Overseas

Annual net migration is down 4,800 from a high point a year ago, largely because more non-New Zealand citizens are leaving the country, Stats NZ said today. More>>

Christchurch: Red Zone Used To Boost Endangered Bee Population

“May 20 has been declared World Bee Day by the United Nations, and I am pleased to announce today that we have been able to use the red zone to protect and grow our native bee stocks,” says Minister Megan Woods. More>>

Trips, Support, Conferences For Agents: Insurers Spend $34 Million On Soft Commissions

“We are concerned that insurers are designing and offering incentives that potentially set advisers up to fail in complying with their obligations.” More>>

ALSO:

Privacy Commissioner: Facial Recognition Tech Not Reliable

The Privacy Commissioner says businesses should take great care when using facial recognition technology because there is a high risk of misidentification. More>>

Compliance Costs: Cheesemakers "Have A Reason To Smile"

Delighted to be a guest at The Great Eketahuna Cheese Festival today, Mr O’Connor launched the Food Safety Template for Cheesemakers – a tool to help cheesemakers producing cheese for New Zealand and Australia to meet food safety requirements. More>>

Te Uru Rākau: NZ Forestry Now Future Proofed

The Associate Minister of Forestry the Hon Meka Whaitiri says the launch of Te Uru Rākau will mean that the New Zealand forestry industry will be future proofed. More>>

ALSO:

Minister Of Tourism Speech: TRENZ 2018

Tourism is an economic bedrock. It’s our biggest export earner, employs hundreds of thousands of people, and the industry is the world’s window into our beautiful country. More>>

ALSO: