sign up log in
Want to go ad-free? Find out how, here.

TPP progress in US, time running out for Greeks, China's housing market improving; UST 10yr yield 2.35%; NZ$1 = 69.3 US¢, TWI-5 = 72.5

TPP progress in US, time running out for Greeks, China's housing market improving; UST 10yr yield 2.35%; NZ$1 = 69.3 US¢, TWI-5 = 72.5

Here's my summary of the key issues from overnight that affect New Zealand.

The US is a step closer to giving the Trans-Pacific Partnership the green light, but still has a few hurdles to jump. In its second attempt, the House has passed a bill to boost the president's authority in negotiating trade deals. However the bill still needs to be approved by the Senate, which has conflicting views on workers' rights that may cause a roadblock. 

In other news, US consumer prices in May recorded their largest increase in more than two years, as the impact lower oil prices has been having on inflation starts to fade. 

The US central bank has this week expressed confidence inflation will gradually move toward its 2% target. Still, rate hikes are likely to be gradual, as a strong dollar continues to dampen underlying price pressures. 

The European Union has called for an emergency summit on Monday to avoid a Greek default. Bank withdrawals have accelerated and government revenue has slumped, while Greece and its creditors remain in deadlocked over a debt deal.

They didn't make any breakthroughs on an agreement overnight, and Greece only has another week and a half to settle its debts with the IMF.

China's housing market has continued to show signs of improvement in May, with more cities seeing new home prices increasing month-on-month. The property market remains largely anemic, but a string of indicators show the sector's decline may be ending in China's major cities. 

Back in New York, UST 10yr benchmark yields inched back overnight to 2.35%.

The 2-year swap rate opens today at 3.08%, which is the lowest it's been in two years.  

US oil markets are pretty much unchanged, with the US benchmark price at US$61/barrel, and Brent crude at US$64/barrel.

The gold price is up to US$1,199/oz.

The New Zealand dollar has weakened, following yesterday's announcement that GDP growth hasn't been as strong as expected. 

The dollar is the lowest it's been against the Australian in six months, falling to 88.8 AU¢ overnight. It rose, before dropping off a bit against the US, to 69.3 US¢. The dollar's also weakened against the Euro, to 60.9 euro cents. The TWI-5 is at 72.5.

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 today is by following our Economic Calendar here »

Daily exchange rates

Select chart tabs

Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
End of day UTC
Source: CoinDesk

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.