Here's my summary of the key news overnight in 90 seconds at 9 am, including news China’s exports rose at the fastest pace in five months in October, adding to signs of a rebound in the world’s second-biggest economy after industrial output and retail sales exceeded forecasts. And they have said they will place a greater emphasis on domestic consumption in future.
In the US, better economic news keeps coming. New claims for unemployment benefits fell last week (although that may have been related to the storm in the North East), their trade deficit narrowed as exports surged, and consumer confidence rose to a five year high.
In Europe, another crisis front has opened up, this time over the requests for funding rises by Brussels for next year's EU budget. A faction involving Germany, France and Britain, has been formed to block the demands and negotiations have collapsed. It is likely that the EU summit scheduled in a few weeks to ratify the budget will have to be postponed.
In Australia is news that Russia's central bank will allocate 1% of its foreign currency reserves, or about A$5 bln, to Australian-dollar assets such as government bonds. The Russian central bank has already begun building a position in Australian dollars but is yet to begin buying Australian government bonds. The development comes as Germany's Bundesbank prepares to wade into Australian dollar assets, highlighting the Australian dollar's growing reputation as a safe-haven asset. These moves will have a spillover impact on the NZ$ too.
The NZ dollar starts the week at 81.4 USc and the TWI is at 73.
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