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Here's our summary of key events overnight that affect New Zealand, with news central banks are facing fast weakening economic data.
All eyes are now on the US Fed. Markets now expect them to cut their policy rate by -25 bps tomorrow. They will be bolstered in that decision by data out today which shows American consumer spending and prices that rose only modestly in June, pointing to slower economic growth and benign inflation. If they do cut, it will be for the first time in a decade.
June home sales faltered in the US, unable to continue the small volume gains in the last few prior months.
But consumer sentiment as measured by the Conference Board survey rebounded strongly.
Meanwhile, the US President has lashed out at China as trade talks resume.
In Japan, industrial production dropped -3.6% in June, the biggest slide since January 2018 and more than double that expected by analysts.
In the EU, their latest business sentiment survey has come in weaker than expected and negative for the first time since 2013.
In Australia, yesterday's released June building consent data came in very weak and weaker than expected. For June 2019 they came in a startling -29% lower than the same month in 2018. For the year to June, the decline was a -19% decline. In anyone's language, this is a painful drop. It is data that caused the Aussie dollar to dip. Now there is talk of "100,000" job losses as a consequence of this and very slow sales in the general housing market.
The UST 10yr yield is now at 2.07% and back up +2 bps slip since this time yesterday. Their 2-10 curve is now at +21 bps and their negative 1-5 curve is at -15 bps. The Aussie Govt 10yr is at 1.21% and unchanged since yesterday. The China Govt 10yr is down -1 bp to 3.20%, while the NZ Govt 10 yr is now at 1.50%, a further -1 bp fall on the same basis.
Gold is now at US$1,430/oz which is a +US$8 rise overnight.
US oil prices are firmer today. They are now just over US$58/bbl. The Brent benchmark is also firm at just over US$65/bbl.
The Kiwi dollar starts today a little softer again, now at 66.1 USc. On the cross rates we are still firm at just on 96.2 AUc. Against the euro we are lower at 59.3 euro cents. That leaves the TWI-5 still at 71.5.
Bitcoin has firmed overnight to US$9,631 up +1.2% since this time yesterday. The bitcoin rate is charted in the exchange rate set below.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».