Here's my summary of the key news in 90 seconds at 9 am, including news that over the weekend the NZ dollar reached its highest level against the Aussie in five years.
The difference in official rate change direction is likely to be the driver behind the moves. Markets expect the RBA to hold or cut its official rates in 2013 and 2014, and they expect the RBNZ to raise ours in 2014.
In Europe, it looks like Angela Merkel has been re-elected in German federal elections with an enhanced vote, but her preferred coalition partners have fared badly. However, her win may be big enough to govern without partners. That is quite an MMP achievement.
India's new central bank governor has raised key interest rates by a quarter of a percentage point in an attempt to curb inflation.
Also last week Indonesia raised its interest rates, citing the 'new normal' and saying it needs to wean itself off the cheap QE funding sweeping the world.
In the US, no-one seems to be worrying about the debt limit 'crisis' that threatens to shut down the Federal government.
It is due to run out of funds at the end of the month and the negotiations to raise the limit between the President and Republican-controlled House of Representatives haven't even started.
In New York, the Dow ended the week at 15,450, down more than 1% on Friday. Oil and gold closed weaker.
UST 10yr yields were also down and are now at 2.74% and a long way from the worried-about 3% level. Bonds have made good price gains.
The NZ dollar starts the week at 83.6 USc, 89.0 AUc its highest level since October 2008, and the TWI is at 77.9.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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2 Comments
DC - an Interesting sidelight to the Jobless Recovery in the US, from the Grey Lady.
'zactly what we see in Dairy, Forestry (evah seen a clear-fell on easy ground, now? No' mo' minions with chainsaws doing mosta the work, all machinery), and not to mention Oracle vs Team NZ - one of the largest software vendors in the world, flying a boat on foils, with....lotsa Airbus-like software, prolly tuned on the fly reacting to telemetered data.....up against traditional yachtspersonages.
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