Here's my summary of the key news overnight in 90 seconds at 9 am, including some generally good news to end the week.
Fewer Americans than forecast sought unemployment benefits last week, indicating their labour market is improving. And US businesses added jobs at a steady pace in August, according to the ADP survey. We get the important Non-Farm Payroll data tomorrow, which always has the potential to move markets.
Reinforcing the positives, US services PMI rose to its highest level since 2005.
There were no surprises from central banks overnight as the Bank of Japan, ECB and Bank of England all left monetary policy unchanged.
Unlike last month there was no further forward guidance from Bank of England governor Mark Carney, however ECB president Mario Draghi again reiterated that the ECB’s monetary policy stance would remain accommodative for as long as necessary, despite the recent raft of excellent economic data for the region, and his raising of euro growth forecasts.
Bucking the trend the new Reserve Bank of India chief, announced measures to prop up the rupee, pledging to raise shortterm interest rates and introduce capital controls.
The Aussie election will be decided tomorrow and it looks almost certain there will be a change of government. The opposition has been championed by the Murdoch press, but now the big Fairfax papers have also turned on Labor. Even Kevin Rudd's brother has given up on him.
New data out from the Bank of International Settlements shows that our currency is now the tenth most traded currency in the world, up from 13th in 2004. That's only 1% though. The data also clearly shows that the US dollar is making back ground it lost in the GFC; it now accounts for 44% of all currency transactions. The second place euro accounts for just 17% with a sharply falling share. The Chinese currency is zooming up the charts and is now one place better than the Kiwi at 9th.
Gold took another $20 tumble overnight and is now below US$1,370/ounce. And the stronger than expected US economic data pushed up US Treasury yields to nearly 3%.
The NZ dollar is ending the week at 78.8 USc, the Aussie is at 86.5 AUc, and the TWI is at 74.8.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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26 Comments
To put things in perspective , Australia has an economy that is the envy of many other nations around the world .... and a record of no recession for 2 decades ....
... which just goes to show how remarkebly incompetent and dysfunctional the current Labour government must be , to be so far behind in the opinion polls ...
We can only hope that the NZ Labour party learn a lesson from the butt-kicking that their Australian contemporaries are gonna receive tomorrow , and ditch the dumb-arse policies of the Clark-Cullen era , and get up to speed ....
Pople were tired of the Australian Labour Pary at the last election. They got back in by making deals with various "eccentric" Queensland Independants. Having an electorate that is sick of you at the last election will allways result in a bloodbath in the following one.
"Fewer Americans than forecast sought unemployment benefits last week, indicating their labour market is improving. And US businesses added jobs at a steady pace in August, according to the ADP survey."
LOL, 50 million on foodstamps and growing, quarter of working men on $10 or less.
Don't forget its JP Morgan makes millions from the food stamp program:
Isn't that awesome, first the Banksters crash the economy with ponzi schemes, then make millions from all the subsequent unemployed starving debt slaves and their children!
God Bless America, Land of the Banksters!
If you take the bank of settlement figures and run a clustering analysis over them looking a both how much is the currency traded and the pattern what is it being traded for, the NZ dollar is most similar to the Mexican Peso, the Russian Ruble, and the Hungarian Forint.
I'd be a bit careful lobbing yourself in with Bernard there A.J. ,sometimes his great mind goes on a great big walkabout.
hey , ta for that......puzzels me why Stephen Hulme hasn't turned up yet..?
It's his thing for sure, would like to see his overview on it.
Bond ......Shames Bond 00.03
Like the link on what Gross doesn't want you to know as well....
P Krugman has been commenting that the rates are low so we (the USA) cant have any issues and there cant be any bond vigilaties. ...hmmm, 3%. While what he is saying is probably correct ie no one will punish the US by demanding more interest for the incraesing debt they get into. What we might see is the same effect driven by fear of a recovery, ie rising rates...that is plain wierd...which might cause a panic and huge losses and a 2nd Great Depression...
Blood letting en-mass as the run starts? Ive seen comments that the first to leave might be OK, everyone else could take large losses, so sort of a game of chicken, a very expensive KFC then.
Cant win, stay on life support is bad, recover and it might actually be worse...oh boy.
regards
And this is interesting too. US 10 year yield over 3% for first time since July 2011.
http://www.marketwatch.com/story/10-year-treasury-yields-creep-closer-t…
cheers
Bernard
yes its too late we are wll into the bubble probably near the top Hovever such tools in place for next time so we are not too late twice in a row would be nice so I as a tax payer dont get another 20 years of Govn bailout debt to pay off.
Being late once isnt too hot, being late twice is obvious gross incompetance....yet of course JK doesnt want a LVR limit.
blah....
regards
http://finance.yahoo.com/news/pimcos-gross-says-global-economy-132533842.html
What Bill Gross Doesn't Want You To Know
http://www.avaresearch.com/avanew/articles/239/What-Bill-Gross-Doesnt-Want-You-To-Know.html
Totally on topic, as it occupies a LARGE portion of this page..!
Why did Olly Newland go for annoying with his ad......from the colour combined with a look that arrived at thoughtfully smug....it's just sooooo R.E. it's offensive.
Come on Olly think .....outside the box...!
How about a shot of you , pointing at Wheeler, laughing your ass off...eh ..uh ...das a good one innit.
Ruperts wife is a spy, only happen in Australia, what happens when you marry young chicks. He must have wondered what she saw in him?
How many others have Asian spies as wives?
In a separate interview with the Nine Network, Palmer made extraordinary claims about Murdoch's estranged wife Wendi Deng.
"'You know, Rupert Murdoch's wife Wendi Deng is a Chinese spy, and that's been right across the world,'' Palmer alleged, prompting the stunned host to ask whether he had "lost the plot".
"She's been spying on Rupert for years, giving money back to Chinese intelligence. She was trained in southern China. I'm telling you the truth," Palmer said.
"Wendi Deng is a Chinese spy and that's why Rupert got rid of her."
Congratulations to the good people of Australia , who've had the wisdom to kick their most appalling Labour government to the kerb !
.. the good news for NZ is that the Ozzie economy will perk up from here , as the business friendly Libs/Nats are back in power ...
And the new PM's wife , Margie Abbott is a Kiwi , so we can expect better relations with our big neighbour , than the disgraceful neglect we received from the ruddy " China-Boy " , Kev.
It's the NZ National Party play list in replicate;
Even with the promise not to raise GST.
Perhaps they'll actually keep that promise!
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