Here's my summary of the key news overnight in 90 seconds at 9 am, including news the New Zealand dollar has fallen below 80 USc for the first time since January 17 overnight after fresh economic data raised fears about the US, European and Australian economies.
These fears of slower growth drove commodity prices lower and undermined those currencies seen as most exposed to commodity prices.
Weaker than expected employment figures in New Zealand yesterday also weakened the currency and drove wholesale interest rates down to near their November lows. Two year swap rates, which are the basis for fixed mortgage rates, fell to their lowest levels since late November. Interest rate markets are now pricing in a 25 basis point cut in the Official Cash Rate by early next year. See more here on moves in wholesale interest rate markets yesterday.
A measure of the services sector in the United States, the biggest part of the world's biggest economy, was weaker than expected, Bloomberg reported.
Traders are watching for signs on the US economy ahead of key Non Farm Payrolls figures for employment due later tonight New Zealand time.
Yesterday data for the Australian services sector showed it contracting at the fastest rate in three years, AAP reported.
Also overnight, the European Central Bank's President Mario Draghi also warned of a deterioration in the outlook for the European economy and said he was open to more monetary stimulus, despite leaving the key European interest rate unchanged at 1%, Bloomberg reported.
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