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


XE Morning Update

The NZD opens up at 0.6543

The Kiwi extended its good recent run yesterday, breaking out to 5 month highs against the USD. Adrian Orr, the RBNZ Governor released his financial stability report, which increases banks minimum capital requirements from the current minimum 10.5%, to 18% for the major banks. While this sounds like a big increase, the large banks currently average just over 14%. The market was expecting these rules to be implemented over a 5 year time frame, and was pleasantly surprised when Orr extended this to 7 years. The reason this is all relevant is that all else being equal, the higher the capital the banks need to hold, the lower the interest rates the RBNZ needs to set to get the same stimulus. This has basically already played out this year, but it helps to explain Orr’s dramatic earlier 50 basis point cut.

The AUD, while still generally having a good run of late, has failed to push higher in the near term due to poor data. Retail sales came in exactly flat, lower than the 0.3% expected. This was exacerbated by the trade balance coming in a few Billion less than expected. It is a monthly figure, and hence a little volatile, but if this drop becomes a trend, then the market will start to worry. In the meantime this can be a very strong signal the market wants to push higher- when it holds up pretty well on poor data.

Over to the UK the Pound is having a good run on positive optimism that Boris could get in with a majority, and therefore Brexit could get wrapped up “quickly”. Boris is promising that they would leave the EU by the end of January. After this a trade deal will need to be agreed, which he is saying he would not extend this deadline beyond the end of next year. This however, would not be the first promise about deadlines to be made. It really highlights that even if Boris wins a majority, and the UK leave in January, this saga is by no means near its conclusion.

Global equity markets are mixed, - Dow +0.03%, S&P 500 -0.05%, FTSE -0.70%, DAX -0.65%, CAC +0.03%, Nikkei +0.71%, Shanghai +0.74%

Gold prices are up 0.7% to $1,484 an ounce. WTI Crude Oil prices are flat trading at $58.37 a barrel.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Mining: OceanaGold Announces Receipt Of WKP Mining Permit

MELBOURNE, Australia, Aug. 6, 2020 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the 'Company') is pleased to announce it has received the mining permit for Wharekirauponga ('WKP') on the North Island of New Zealand. ... More>>


Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>


NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>


Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>


Antarctica NZ: Ice-Olation

Antarctica New Zealand is gearing up for a much reduced season on the ice this year and a very different deployment to normal! Before they head to one of the remotest places on the planet, all personnel flying south with the New Zealand programme will ... More>>


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>


Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>


FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>