US savings rate rises, consumer spending grows; weak China data; UST 10yr yields down to 2.16%; oil and gold fall; NZ$1 = 65.9 US¢, TWI-5 = 70.9

US savings rate rises, consumer spending grows; weak China data; UST 10yr yields down to 2.16%; oil and gold fall; NZ$1 = 65.9 US¢, TWI-5 = 70.9

Here's my summary of the key events overnight that affect New Zealand, with news of commodity prices really under the gun.

But first, in the US data released overnight showed their saving rate rose to 4.8% in June from 4.6% in May. This rise was because consumer spending in June was held back by slower car buying. But with car sales sharply higher in July, consumer spending likely got a boost last month. Spending is supported by rising incomes as their labour markets continue to expand and house prices rise, boosting household wealth. The PCE data is something the US Fed says it watches closely.

But there was less than stellar growth in both US construction data for June and factory output in July. Both showed healthy gains but below economist expectations.

The bad news keeps mounting for commodities however after the sector was dealt a further blow with weaker than expected China data. (But oddly, the cost of shipping is rising.)

In New York, the UST 10yr yield benchmark is sharply lower yet again at 2.16%. Local swap rates will also open lower today as well.

The US oil price is also a lot lower at US$45/barrel, and Brent crude is at US$49/barrel, the first time under US$50 since January. Basically there is a supply glut.

The gold price has also taken a hit today and is now at US$1,086/oz.

But the New Zealand dollar starts today pretty much unchanged at 65.9 US¢, at 90.8 AU¢, and at 60.2 euro cents. The TWI-5 is at 70.9.

Look out later today for July QV data, and possibly the Barfoot Auckland data as well. We will also get the Reserve Bank of Australia's latest rate review late this afternoon.

And then, this time tomorrow we will be reporting on the latest dairy auction - followed on Friday by Fonterra's payout price review. It might be a tough week.

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 »

The 'US$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'AU$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'TWI' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥en' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥uan' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '€uro' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'GBP' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'Bitcoin' chart will be drawn here.
Loading...
USD 
NZD
End of day UTC
Source: CoinDesk

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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.

3 Comments

Brent crude at $49/bbl at US$0.659/NZ$, =$1.56 per litre. We continue to be ripped off.

and ripped off with dairy products too.
Why is dairy prices dropping like a stone, whereas milk in my local shop has increased !!!

And pretty much all building construction materials etc, etc. It is time that we had a change of government to sort out these bloated entities that have found new ways of protecting themselves from open competition since the last big sort out in 1987.