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


Xe Morning Update- How Lowe can you go?

The Kiwi opens up at 0.6424

The NZD has enjoyed a bit of a bounce on the back of solid retail sales data out yesterday. A fairly volatile data set, but it bet expectations by over 1%. The Kiwi is looking most constructive against the AUD, but is still yet to really break out of any recent ranges.

Out of the US, there are reports that there could be imminent news about a deal getting done. As you would have noticed, positive trade comments happen all the time before getting walked back, so the market is currently taking it with a slight grain of salt. If the phase one deal does get over the line though, expect risk on moves, and currencies like the NZD and AUD to benefit.

As promised the RBAs Governor gave a speech last night about alternative monetary policy, and its effects. The key takeaways were QE, or quantitative easing, would only be considered if the cash rate got down to 0.25%. Also the jury was still out on effects of negative rates overseas, and that would be extremely unlikely to happen in Australia. This is all a little general, but gives an insight to the long term thinking of the RBA. Being only at 0.75% at the moment, and with QE being considered at 0.25%, I would really think they want to keep their powder dry and not needlessly drop the cash rate to 0.5% with all the speculation and volatility that would bring at every future meeting.

The Pound is off a touch on the latest polling, with the Conservative lead narrowing, and Labour gaining. This highlights that we need to be aware of headline risk leading into the elections, as the closer we get the more polls are going to move things.

Highlight of the day today is Adrian Orr giving a press conference on financial stability. The banks will be watching closely to see hints on how much capital they may need to hold.

Global equity markets are generally higher across the board, - Dow +0.14%, S&P 500 +0.16%, FTSE +0.09%, DAX -0.08%, CAC +0.08%, Nikkei +0.35%, Shanghai +0.03%.

Gold prices have increased slightly, gaining 0.2% to $1,459 an ounce. WTI Crude Oil prices are good for a 0.9% gain to $58.23 a barrel.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

Sci-Tech: Perseverance Rover Lands On Mars – Expert Reaction

NASA has landed a car-sized rover on the red planet to search for signs of past life. The vehicle has more instruments than the four rovers preceding it, and it’s also carrying gear that could help pave the way for human exploration of Mars. The ... More>>


ASB: Quarterly Economic Forecast Predicts OCR Hike As Early As August 2022

Predictions of interest rate rises have been brought forward 12 months in ASB’s latest Quarterly Economic Forecast. Chief Economist Nick Tuffley now expects the RBNZ to begin raising the OCR from its current level of 0.25% as early as August ... More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>

OECD: Unemployment Rate Stable At 6.9% In December 2020, 1.7 Percentage Points Higher Than In February 2020

The OECD area unemployment rate was stable at 6.9% in December 2020, remaining 1.7 percentage points above the level observed in February 2020, before the COVID-19 pandemic hit the labour market. [1] In December, the unemployment rate was also stable ... More>>

Stats NZ: Unemployment Drops To 4.9 Percent As Employment Picks Up

The seasonally adjusted unemployment rate dropped to 4.9 percent in the December 2020 quarter, from 5.3 percent in the September 2020 quarter, Stats NZ said today. Last quarter’s unemployment rate of 5.3 percent followed the largest increase observed ... More>>