A review of things you need to know before you go home on Friday; minor retail rate changes, stronger PMI, Worldline's EFTPOS on Xero app store, Aussie inflation expectations bite, swaps stable, NZD softer & more

Here are the key things you need to know before you leave work today.

MORTGAGE RATE CHANGES
Kookmin Bank raised rates today. ICBC raised them very late yesterday. Heartland Bank raised its market leading floating rate by +26 bps to 3.25% and all its fixed rates.

TERM DEPOSIT RATE CHANGES
On the TD front, Kookmin Bank also raised rates today and ICBC raised them very late yesterday.

SOUTHERN STRENGTH
The October factory PMI for New Zealand came in much more expansionary than the one for September. But BNZ Senior Economist, Doug Steel stated that “even though October’s reading is above average, we’d classify it more in the realm of some recovery from a large hit rather than an indication of outright strength." It was depressed in Auckland, but the further south you go the better is becomes. A bright spot is that employment is holding up despite all the pressures. The overall improvement can also be seen in the rising demand for electricity.

WORLDLINE JOINS XERO APP STORE
Worldline, formerly Paymark, has joined the Xero App Store providing a service that lets small businesses accept customer payments for Xero-generated invoices via Online EFTPOS. Online EFTPOS allows consumers to pay for products and services online using money directly from their bank account. Now, when Xero users generate and send an invoice to a customer, they can connect them to Online EFTPOS to accept payment in this manner.

A SHARP AUSSIE BITE
In Australia, inflation expectations rose to 4.6% in November from 3.6% in October. That is a sharper jump than the actual inflation in September of 3.0%.

LOCAL PANDEMIC UPDATE
In Australia Delta cases in Victoria have slipped to 1115 cases reported there today. There are now 16,098 active cases in the state (another increase) and there were another 9 deaths yesterday. In NSW there were another 286 new community cases reported today with 2,845 active locally acquired cases (both increases too), and they had another two deaths yesterday. Queensland is reporting two new cases. The ACT has 15 new cases. Overall in Australia, just over 82% of eligible Aussies are fully vaccinated, plus 8% have now had one shot so far. In contrast, there was one new case in New Zealand at the border, and 201 new community cases. Now 89.9% of Kiwis nationally aged 12+ have had at least one vaccination, and the Australian rate is now also at 89.9% of all aged 16+.

GOLD FIRM
In early Asian trading, gold is at US$1859/oz and up another +US$9 from this time yesterday. That is a little lower the closing New York price, but above the earlier London fix.

EQUITIES FIRMER IN ASIA, MIXED LOCALLY
The NZX50 is down -0.6% in late trade today, heading for a -1.0% fall for the week. The ASX200 is up +1.1% in early afternoon trade today, heading for an unchanged week. Tokyo is also up +1.1% in early trade today, clawing back some of the losses earlier in the week. If it finishes at this level it will end its week down -0.4%. Hong Kong is up +0.6% in early trade today, heading for a weekly gain of +2.6%. Shanghai is flat in their early trade, heading for a weekly rise of +1.2%.

SWAP & BONDS RATES LITTLE-CHANGED
We don't have today's closing swap rates yet. They are probably flatter. The 90 day bank bill rate is up yet another +1 bp at 0.85%.The Australian Govt ten year benchmark rate is now at 1.83% and down -1 bp. The China Govt 10yr is now at 2.95% and up +1 bp. The New Zealand Govt 10 year rate is now at 2.63%, unchanged and still below the earlier RBNZ fix for that 10yr rate at 2.64% (unchanged). The US Govt ten year is still at 1.57% because US bond markets are closed today.

NZ DOLLAR SOFTER AGAIN
The Kiwi dollar is now at 70 USc and -½c lower than this time yesterday. Against the Aussie we are only lower at 96.1 AUc. Against the euro we are down at 61.2 euro cents. The TWI-5 is now back down to 74.3 and a -50 bps retreat since this time yesterday.

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BITCOIN SETTLES
The bitcoin price is now at US$65,144 and a net +1.0% higher than this time yesterday. Volatility in the past 24 hours has been quite modest at just over +/- 1.1%.

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