Mon, Mar 01, 2021 @ 13:42 GMT
Home Tags New Zealand

New Zealand

Weekly Economic & Financial Commentary: The U.S. Economy Continues to Start 2021 on a High Note

U.S. Review The U.S. Economy Continues to Start 2021 on a High Note In January, personal spending increased at a robust 2.4% pace, while personal income soared 10.0%. The core PCE deflator rose 0.3% during the month and 1.5% over the year. Fed Chair Powell testified in front of Congress...

Week Ahead – Rising Yields Spook Markets

Powell fails to ease concerns Everyone is watching the bond markets at the moment, as yields accelerate higher and investors become increasingly anxious. That is dominating the headlines and it’s unlikely to change next week, with the jobs report on Friday now even more significant. Country US It seems Wall Street is much...

Yen Spikes Against The US Dollar After Strong Japan Data

The New Zealand dollar declined slightly after the latest trade numbers from the country. According to the statistics bureau, the country exported goods worth more than N$4.19 billion in January. This was relatively lower than the December exports of N$5.38 billion. In the same period, its imports declined from...

Euro Attempts a Come Back, Global Yields Surge Continues

Surging global yields remain the major focus today, with Germany 10-year bund yield hitting as high as -0.234, while UK 10-year gilt yield reaching as high as 0.818. Earlier in Asia, Japan 10-year JGB yield closed strongly at 0.152. US 10-year yield is also trading above 1.45. In the...

NZ Dollar Pauses after Huge Gains

The New Zealand dollar has posted modest gains in the Thursday session. Currently, NZD/USD is trading at 0.7445, up 0.16% on the day. New Zealand dollar soars The New Zealand dollar exploded on Wednesday, rising 1.3 per cent. The currency shot up after Finance Minister Grant Robertson announced that the...

Powell Puts Recovery Trade Back On Track

The inflationary wobbles in global stock markets were partially put to rest overnight, as the Federal Reserve Chairman, Jerome Powell, continued soothing frazzled nerves during his second day of testimony on the Hill. Apart from highlighting something already mentioned here previously, that cost/push inflation as the global recovery gathers...

Is The Dollar Near A Potential Tipping Point?

Markets Global markets yesterday again showed sharp swings as investors tried to adapt positions to the developing reflation narrative. European markets took a cautious albeit constructive start. However, trading on US interest rate markets turned very volatile. US yields jumped sharply higher with the 10-y and the 30-y setting new...

Positive Vaccine News Keep Ticking In

Market movers today Another day with mostly tier-2 data releases. In Sweden, the NIER survey is due out. In the US we get weekly jobless claims data and core capex data for January. A lot of FOMC members are also speaking tonight but they are unlikely to say anything...

Team Risk-On Extends Leads as DOW Hits New Records

As DOW hit another record with strong rise overnight, team risk-on is extending the lead over team risk-off in the currency markets. New Zealand Dollar is having a mild upper hand over Australian, Canadian and Sterling for now. But the Loonie is trying to catch up with rising oil...

New Zealand ANZ business confidence dropped to 7, overshoot in demand dissipating

New Zealand ANZ Business Confidence dropped to 7.0 in February, down from December's 9.4, and preliminary reading of 11.8. Confidence was highest in retails at at 15.6, followed by construction at 12.9, services at 10.8 and manufacturing at 3.6. Agriculture confidence was at -38.1. Own Activity Outlook rose to 21.3,...

Yen Under Pressure as Swiss Franc Decline Slows a Bit

Selling focus appears to be turning to Yen as markets enter into US session. Swiss Franc remains weak but the decline is slowing slightly. Dollar and Euro are also soft, but both are supported by buying against Yen and Franc. On the other hand, commodity currencies remain the strongest...

NZD Higher Despite RBNZ Cautious Tone

The New Zealand dollar has recorded strong gains in Wednesday trading. Currently, NZD/USD is trading at 0.7379, up 0.61% on the day. RBNZ says prolonged QE needed The New Zealand dollar continues to shine, as it beats up on the US dollar. NZD/USD has gained 1.2% so far this week, and...

Dollar Loses Steam On Powell Dovishness

US dollar rally stopped in its tracks The US dollar was catching a higher yield tailwind overnight, with the dollar index rising to 90.26 intra-day. That quickly reversed as Mr Powell released the doves, and the dollar index finished just 0.18% higher at 90.16. Asia has continued selling US dollar,...

Powell Soothes Nerves

Central banks send dovish message to markets Fed Chairman Jerome Powell stayed on message overnight, acknowledging the improvements seen in the economy but highlighting that it was “uneven and far from complete.” Mr Powell saw no signs of “bad inflation”. He committed to keeping monetary policy ultra-easy, emphasising the need...

Can Powell’s Commitment Cause A Pause In The Steeping Trend On Global Interest Rate Markets?

Markets Investors continued pondering how to cope with different aspects of the reflation trade. Rising yields and an astonishing commodity rally are a sign of optimism on the economic rebound, but might also became a source of volatility. European equities initially nosedived but reversed most of the losses. US indices...

Resolute – Review Of The RBNZ Monetary Policy Statement, February 2021

As expected, the RBNZ left all monetary policy settings unchanged today. The RBNZ resolutely expects to keep policy stimulatory for an extended period. Inflation is rising right now, but the RBNZ thinks this is temporary. The RBNZ wants to see the whites of the eyes of sustained inflation...

European Open: Sterling Spikes, German GDP Up Next

Volatility from GBP pairs woke traders up in Asia. Meanwhile, Powell’s ‘Turnaround Tuesday’ comments for Wall Street failed to spill over to Asian equities. Asian futures: Australia's ASX 200 index fell by -61.4 points (-0.90%) to close at 6,777.8 Japan's Nikkei 225 index fell by -484 points (-1.61%) to close...

New Zealand Dollar Spikes After The RBNZ Decision

The New Zealand dollar rose slightly after the Reserve Bank of New Zealand (RBNZ) interest rate decision. The bank left the main interest rate unchanged at 0.25% and the target of its quantitative easing program at N$100 billion. Further, its lending program for businesses will also continue. In a...

RBNZ Upgraded Economic Forecasts, NZD Shot Higher

The RBNZ delivered a more upbeat statement at today meeting. While leaving the monetary policy measures unchanged and warned of the uneven economic recovery, the staff upgraded the economic projections significantly. Policymakers also introduced a new forward guidance which suggests that policy adjustment will only be made until the...

CHF Selloff Intensifies, NZD Rises after RBNZ

New Zealand Dollar rises broadly today after RBNZ stood pat and didn't sound particularly concerned with the strong exchange rate. Though, Sterling remains the strongest one, continued to be supported by lockdown exit optimism. Other commodity currencies are also firm despite steady risk market sentiments. Yen and Swiss Franc...

NZD/USD and NZD/JPY surges, RBNZ not too concerned with strong Kiwi

New Zealand Dollar surged after RBNZ rate decision, as the central bank didn't sound particularly concerned about recent surge in exchange rate. "The gains from higher export commodity prices have been somewhat offset by the stronger New Zealand dollar" was the only thing that mentioned. In the key baseline scenario...

RBNZ keeps policy unchanged, prolonged monetary stimulus needed

RBNZ left monetary policy unchanged today as widely expected. OCR is held at 0.25%,  Large Scale Asset Purchase Programme at up to NZD 100B and Funding for lending program unchanged. Current monetary policy setting were seen as "appropriate" to achieve the central bank's inflation and employment remit. But a...

Asian Open: Powell And Cryptocurrencies Create Turbulence For Indices

A broad sell-off in cryptocurrencies exacerbated pressure on indices, which were already buckling under the strain of higher yields. Until Powell came to the rescue. Asian futures: Australia's ASX 200 futures have fallen by -0.37% to 6,766 Japan's Nikkei 225 futures have fallen by -0.36% to 30,060 Hong Kong's Heng...

Weak Retail Sales Cool off NZ Dollar

The New Zealand dollar has posted small gains in the Tuesday session. Currently, NZD/USD is trading at 0.7313, down 0.22% on the day. Retail Sales slide The New Zealand economy has looked strong, with most key indicators pointing upwards. However, investors were in for a rude surprise on Tuesday, as retail...

Sterling Stronger on Reopening Optimism, Dollar Stabilizes

Sterling rises broadly today as UK Prime Minister Boris Johnson said he's "hopeful" and "very optimistic " to end pandemic restrictions on June 21, based on the "one-way road to freedom" roadmap unveiled yesterday. Canadian Dollar is Dollar is following as second strongest, with a little help from oil...

GBP OnThe Rise As Pandemic’s End In Sight

The GBP seems to continue its rise against the USD, EUR,JPY and CHF as the UK has started plans on lifting the restriction measures. It's characteristic that UK's PM Johnson stated that the end of the pandemic is “in sight”, providing further confidence in the markets. Johnson explained a...

Dollar And Tech Shares Suffer Ahead Of Powell’s Testimony

Tech stocks slump as higher yields bite, but FX and commodities calm Dollar lags despite equity selloff, highlighting recent shift in dynamics All eyes on Chairman Powell's testimony today, and RBNZ decision afterward Nasdaq gets smoked as value outshines tech It was a particularly strange session on Monday, with many...

US Dollar Delines Ahead Of Powell’s Senate Testimony

The New Zealand dollar declined slightly today after relatively weak economic data from the country. According to the statistics bureau, the overall retail sales dropped by 2.7% in the fourth quarter after rising by 28% in Q3. This increase was worse than the median estimate of a 0.5% decline....

Dollar Soft as Markets Await Fed Chair Powell Testimony, Oil Jumps

Dollar stays generally soft in Asian session today as markets await Fed Chair Jerome Powell's testimony. The topics of inflation and surging treasury yields would be the focuses. For the former, Powell would likely talk down the significance of temporary rise in inflation, and focus on medium term outlook...

New Zealand retail sales dropped -2.7% qoq in Q4

New Zealand retail sales dropped -2.7% qoq in Q4, below expectation of -0.5% qoq. Ex-auto sales dropped -3.1% qoq, versus expectation of -0.6% qoq. That same after strong reboun dof 27.8% qoq in retail sales in Q3. Nevertheless, comparing to Q4 2019, total value of retail sales rose 4.9% yoy....