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

 

Climate Summary: NZ’s Equal-2nd Warmest Year On Record

Annual temperatures were above average (+0.51°C to +1.20°C above the annual average) across the majority of New Zealand... 2018 was the equal 2nd-warmest year on record for New Zealand, based on NIWA’s seven-station series which began in 1909. More>>

ALSO:

GDP: Economic Growth Dampens In The September Quarter

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today... GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter. More>>

ALSO:

Up $1.20: $17.70 Minimum Wage For 2019

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO:

Retail: IKEA To Open In New Zealand

Inter IKEA Systems B.V. is today announcing its intentions to grant the Ingka Group exclusive rights to explore expansion opportunities in New Zealand. More>>