Here's my summary of the key events overnight that affect New Zealand, with news ahead of today's Monetary Policy Statement from the RBNZ.
In the US, data out today shows wholesale stocks unexpectedly rose in January as sales fell. This strongly suggests that efforts by businesses to reduce an inventory overhang could hang around well into 2016 and hold back their economic growth in coming months.
In Australia, (and in contrast to New Zealand) housing finance fell sharply, down almost -4% in January, especially for owner-occupied dwellings.
In China, their foreign-exchange regulator is using a new system to track purchases of foreign funds and has asked banks to reduce foreign-currency transactions. It is focusing on spikes in currency trading, forcing tight scrutiny of fx transactions by businesses, including those of Chinese entrepreneurs investing abroad and Chinese companies paying overseas bills. The initiative is slowing their ability to make deals.
In New York the benchmark UST 10yr yield is up and will start today at 1.87%. The New Zealand swap curve has narrowed.
The oil price rose as well and is now at US$38/barrel in the US while Brent is at US$41/barrel. Saudi Arabia is hurting and is seeking a bank loan of between US$6 to US$8 bln according to unofficial reports. If true, this would be the first significant foreign borrowing by the them in over ten years.
The gold price is down -US$7 in mid-day trading at US$1,253/oz.
The NZ dollar will start today firmer at 68 US¢, at 90.4 AU¢, and at 61.7 euro cents. The TWI-5 index is back up to 72.1.
Join us at 9 AM today when we will have the RBNZ rate decision and we will be streaming the Graeme Wheeler press conference live.
And early tomorrow morning, the ECB will review its official rate settings. If Mario Draghi does not push their benchmark deposit rate further into negative territory, market reactions could be very volatile.
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 ».