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- What happened Wednesday 10
- 90 seconds at 9 am: NZD slips sharply 9
90 seconds at 9 am: US and German PMIs strong, China's weak; big Japan trade deficit; Nigeria fires central bank boss; NZ$1 = US$0.828 TWI = 77.9
Here's my summary of the key news overnight in 90 seconds at 9 am, including news that manufacturing is healthy in both the US and Europe.
In the US based on data collected over the past week the state of manufacturing seems very healthy indeed. The sector has rebounded strongly in February with their manufacturing PMI hitting its highest level in almost four years. There was a sharp rebound in output and new order growth, and cost inflation eased to an eight-month low.
In China however, the prospects don't look good with a contraction recorded and the output component hit a seven month low. The test of China's resolve to tackle its banking and credit bubble is now on. Overnight the PBoC drained more cash from the system and issued new rules on liquidity. Their overnight cash rates fell to their lowest level in 10 months.
The Japanese trade deficit for January hit a record, a blow for Prime Minister Abe's strategy. Consumers aren't impressed there either. And it doesn't help Japan that China is slowing
Back in the US, their latest unemployment claims data showed a fall with layoffs easing there again. And the Philly Fed's factory index fell sharply and unexpectedly, although it uses data earlier in the year.
Being a central bank governor can be hazardous, especially if you accuse your boss of massive fraud. The Nigerian central bank boss is now unemployed after he pointed out US$20 bln of oil revenues has 'gone missing'.
Oil and gold fell overnight while equity markets are rising in New York, buoyed by the good factory and jobs data.
The NZ dollar was basically unchanged overnight apart from retracing yesterdays down blip against the Aussie and starts today at 82.8 USc, 92.2 AUc and the TWI is at 77.9.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »