US job openings above 5 mln; China deflation fears; Greeks agree to privatisations; UST 10yr yield at 1.99%; oil falls on higher US output; NZ$1 = 74.1 USc, TWI = 77.6

Here's my summary of the key issues that affect New Zealand overnight with news of deflation concerns in China now.

But first, American job openings rose above 5 million for the first time since 2001 as their labour market is clearly expanding. All the jobs data seems to be in place for a mid-year Fed rate rise except strongly rising pay rates, although there are early signs of that too.

Also in the US, it is reported that New York authorities want criminal charges brought against bank currency manipulators.

In China, which is gearing up to go on its annual Spring Festival holidays (February 18 to 25), annual consumer inflation has hit a five-year low in January at just +0.8% while producer prices worsened to -4.3%, underscoring deepening weakness in the economy and heaping pressures on policymakers to inject more stimulus to underpin growth. Rate cuts are coming too say observers.

The Greek situation did not progress much overnight although there are reports the new government will go ahead with some previously planned privatisations. China is the likely buyer. This may be important as Greece's new government indicated it may 'go elsewhere' for more debt if the EU holds to its present course. 'Anti-austerity' now seems to be code for 'more borrowing'.

In New York, benchmark UST 10 year bond yields rose again overnight and are now at 1.99%. In New Zealand yesterday our wholesale swap rates consolidated although we did see some steepening at the long end.

The oil price has fallen back a little at US$51/barrel with Brent crude at US$57/barrel. The US Energy Department reported record high gas and crude stocks and said US oil output will keep rising until at least 2020. Their recent imports have shown some dramatic changes.

Gold is range bound at present and is currently at US$1,234/oz.

We start today with the New Zealand dollar basically unchanged from where we left it yesterday. It is at 74.1 USc, at 95.3 AUc, and the TWI is now at 77.6.

Later this morning we expect to get January housing market data from the REINZ.

If you want to catch up with all the changes yesterday we have an update here.

The easiest place to stay up with event risk is by following our Economic Calendar here »