US jobless claims steady; EU patience with Greece wearing thin; AU mining jobs evaporate; AU budget deficit jumps; benchmark bond yields slump; NZ$1 = 73.9 USc, TWI = 79.3

Here's my summary of the key issues from overnight that affect New Zealand, with news of disquieting trends in Australia.

But first, American jobless claims last week held steady reinforcing the idea that their labour market is on track and generating new jobs at a fairly fast clip.

Across the Atlantic, euro zone leaders will tell Greece later today that time and patience are running out for it to implement agreed reforms to avert a looming cash crunch that could force it out of the single currency. Suddenly 'Grexit' talk is back, this time fueled by the EU. However, Greece is about to make a relatively small debt repayment to the IMF later today.

In Ireland, the countdown is on until the removal of EU milk production quotas and their dairy industry is gearing up to produce a lot more product. If they get where they are aiming for it will still be small beer by NZ standards, but still it will be more supply into world markets.

In Australia there was data released yesterday that showed their mining companies are shedding jobs by the thousands, with 50,000 workers losing their jobs in the past 12 months.

And their federal budget forecast has gone backwards by at least A$80 billion since their government came to office, undermining their Prime Minister's claim that a tough budget is not needed this year because the nation's finances are under control. They clearly aren't.

In New York, the UST 10yr yields have continued their retreat after the Fed statement and are now at just 1.94%. Local swap rates followed the Wall Street lead yesterday and flattened at the same time. The 1-5 curve is as flat now as we have seen it since early February when it was completely flat. Today it is likely to flatten further on the Wall Street moves this morning.

The crude oil price rose from its very low levels and is now back to US$45/barrel and Brent crude is at $54 a barrel.

The gold price also took a bit of a jump overnight and is now at US$1,170/oz. In London, almost a century of tradition will disappear as technology takes over today in gold trading. Today is the last day that traders at four banks agree by phone to deal and value gold.

The New Zealand dollar starts today slightly weaker against the greenback at 73.9 US¢, it is at 97 AU¢ and actually close to a record high, and the TWI is at 79.3.

If you want to catch up with all the local changes yesterday, we have an update here.

The easiest place to stay up with event risk is by following our Economic Calendar here »