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

 

XE Morning Update - NZ

The NZDUSD opens sharply lower at 0.6499 this morning.

The USD rose across the board, driving the NZDUSD down below 0.6500 in the process, after encouraging US retail sales helped to alleviate fears the US economy is slowing rapidly.

Robust US retail sales in May suggested a pickup in consumer spending and helped, at the margins, to reduce the need for an immediate US Fed rate cut at its interest rate meeting held later this week. However, the markets still expect the Fed will lower rates by 0.25% on 1st August (NZ time), followed by another cut before the end of 2019.

China-US trade tensions appear to be weighing on the Chinese economy, with industrial output growth unexpectedly slowing to more than a 17-year low, amid slowing investment. The Chinese monetary officials are likely to be feeling the need to offer additional economic stimulus.

The NZD is suffering from fallout from the global economic slowdown and trade disagreements. The markets have largely priced in a 0.25% cut by the RBNZ on 7th August, one day after an expected rate by the Reserve Bank of Australia, as global central banks appear to be locked in a race to the bottom!

The GBP fell further yet again after polls indicated Brexiteer Boris Johnson is moving closer to becoming the next UK Prime Minister. The markets are concerned Boris Johnson will lead the UK towards a no-deal Brexit.



There is no data scheduled on the local data calendar today.

Global equity markets were generally lower on the day - Dow -0.1%, S&P 500 -0.2%, FTSE -0.3%, DAX -0.6%, CAC -0.2%, Nikkei +0.4%, Shanghai -1.0%.

Gold prices fell by 0.3% to USD$1,342 an ounce. WTI Crude Oil prices gained 0.9% to US$51.57 per barrel after attacks on two oil tankers in the Gulf of Oman raised concerns about potential supply disruptions.

Upcoming Data releases (NZST):
• No local data today

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Emission Statement: No New Coal Boilers For Fonterra

Fonterra is shaving eleven years off its coal target, as it announces a new commitment to reduce its reliance on coal. More>>

ALSO:

Long Time Coming: Soil Turned On Waimea Dam

After almost 20 years of planning and a 'gruelling' process to keep the project on track, the Waimea Community Dam, one of the Tasman District's largest-ever projects, is now under way. More>>

Where's My Drone Pizza: Govt's Drone Plan 'Will Help Economy Take Off'

The paper Taking Flight: an aviation system for the automated age sets out the Government’s vision for how drones can be better integrated into the current transport system to develop a thriving, innovative and safe sector. More>>

ALSO:

Up 17.% In June Year: Fuel And Rent Drive Inflation

The consumers price index (CPI) rose 0.6 percent in the June 2019 quarter, due to higher prices for petrol and rent, Stats NZ said today. More>>

ALSO: