Here are the key things you need to know before you leave work today.
CORE FUNDING RATIO IMPROVES
The RBNZ's core funding ratio metric for the NZ banking system improved in April according to data released today. At 86.2 its the highest this measure has been since it was started in April 2010. The Mismatch Ratio, reported at the same time is unremarkable for April.
AUSSIE ECONOMY REBALANCING?
Australia’s current account deficit narrowed substantially in the March quarter, driven by dual improvements in the trade and income account balances. The current account deficit narrowed by A$6.0 billion to A$5.7 billion, the largest one quarter improvement in four years, leaving the annual balance at only -1.4% of GDP, the smallest current account deficit since 1980. But the fx markets ignored the result, maybe because April retail sales were flat.
ANZ JOINS 0% CREDIT CARD PARTY
ANZ today offered NZ's first 0% balance transfer deal, responding to ASB and Westpac who offer a 0% 'special' on purchases, and Kiwibank who offer a 1.99% on both purchases and/or balance transfer. All deals require you to switch. They are not for you if you bank there anyway.
BANKS GIVE UP ON POSTIE PLUS
The 80+ store retailer has lost the support of its banker because it can't show a sustainable future. It is now in 'voluntary receivership', administered by PwC. The retail workers union has reported that there are interested buyers lurking.
HEARTLAND RAISES BUSINESS CALL RATE
This business account now yields 4.25% at call, up from 4.10%. That's now 'best in class' and its on all balances from $1.
BEST TERMS OF TRADE IN 41 YEARS
Q1 terms of trade were the best in more than a generation, almost two generations. This is another data item leading up to NZ's own current account result and economic growth data due out the week after next. Most analysts however think this is the high-tide mark and it will deteriorate slowly from here.
MOMENTUM
Despite some international weakness, Treasury reported today that NZ's May data showed strong demand and more economic momentum. The labour market continued to improve in the March quarter, with strong jobs growth and an expansion of the labour force, resulting in a steady unemployment rate.
WHOLESALE RATES ADJUST
Wholesale swap rates were up slightly today following the Wall Street rises overnight. It was the longer terms that rose more, up 2 bps, the shorter terms only up 1 bps. The 90 day bank bill rate is unchanged today at 3.42%.
OUR CURRENCY
The NZ dollar started today half a cent lower and hasn't moved much since. The USD is at 84.5 USc, the Aussie is now at 91.3 AUc. The TWI is at 78.9.
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