NZ PMI is close to contraction and internal indicators hint at recessionary pressures ahead for New Zealand. A business conditions index by Morgan Stanley sees its largest drop on record to its most pessimistic level since 2008.
NAB now call for 3 RBA cuts in 2019, RBC and Maquarie lower forecasts for RBA to cut to 0.5%. AU10 year hits fresh record low of 1.37%, AUD/JPY hones in on the July ’16 low.
NZD and AUD are the weakest majors today on weaker domestic data, JPY and CHF are the strongest on a slight risk-off tone. NZD/JPY is today’s biggest mover, shedding -0.6% at the low and hittig its typical daily range.
UK agrees with US assesment that Iran is to blamce for shipping attacks in Gulf Of Oman. US military says it has ‘no interest in engaging in a new conflict of the middle east’, yet also stating they’re ‘ready to defend US interests…’. WTI finds stability above $52 after yesterday’s oil price spikes.