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

 

XE Morning Update - May 31, 2019

The Kiwi opens at 0.6507

The Kiwi threatened to get interesting overnight, before deciding against it and reverting back to where it started. We are in a bit of a holding pattern, with the market looking for direction either way. This is not uncommon, but what is worth remembering is that when rates finally break out, they can have a decent move.

We have Chinese Manufacturing PMI at 1:00 pm NZT. This is definitely something Australia watch’s closely. Given the current back drop of political risk around the trade war though, what tends to happen is these data points lose a little significance. We would argue this is the case here - on a slightly positive or close to forecast number of 49.9, you might only get a small bounce in the AUD. However, if there is an especially poor number, this could make things very interesting. The market would then be very quick to extrapolate this out, thinking the trade war is indeed hurting China, and therefore they would be more willing to come to the negotiating table. This would ironically be risk positive, and also good for the AUD. Not every day you get that kind of outcome going into a data release. However, always take these thoughts with a grain of salt, as currency markets have a habit of surprising, but it will be interesting to see play out.

It is a long weekend for New Zealand, with locals enjoying the sunny Queen’s Birthday weather, so no NZD settlements on Monday, though we will still be able to settle payments out of Australia.

Global equity markets were mostly lower on the day - Dow -0.07%, S&P 500 +0.07%, FTSE +0.46%, DAX +0.54%, CAC +0.51, Nikkei -0.29%, Shanghai -0.31%.

Gold prices are up 0.9% to USD$1,279 an ounce. WTI Crude Oil prices slumped 3.9% to US$56.47 per barrel.

ends



© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Oil Exploration: Chevron, Equinor Depart NZ

Chevron and Norwegian oil giant Equinor have opted to abandon their joint exploration efforts off the east coast of the North Island... Chevron said the decision not to proceed with the next five-year stage of their work programmes was based on the firms’ broader portfolio considerations and not “policy or regulatory concerns.” More>>

ALSO:

Reference Group Proposal: Motorists, MTI Support Ban On Less Safe Car Imports

A proposal to ban some used car models from being imported into New Zealand is being welcomed by the Motor Industry Association, which says Japan's scraps are being sent here for waste disposal. More>>

ALSO:

Gordon Campbell: On Asking The Banks To Be Nicer To Farmers

Few would begrudge the idea that banks should be made to act more humanely – given the obscene profits that the Aussie banks are extracting annually from New Zealand, they can surely afford to cut some slack. More>>

ALSO:

Wider Net Ban, Other Threats: Plan To Expand Protection For Maui And Hector’s Dolphins

The Government is taking action to expand and strengthen the protection for Māui and Hector’s dolphins with an updated plan to deal with threats to these native marine mammals. More>>

ALSO: