Here's my summary of the key events overnight that affect New Zealand, with news of another Aussie bank caught taking advantage of its clients.
But first, this morning's dairy auction saw generally higher prices with the overall index up +2.6% in US dollars which is the fourth rise in the last six auctions.
In NZD, prices advanced +4.3%, their biggest rise since October 2015. The overall index is now back to levels we last saw in early January. Still, despite this rise, there is little to suggest farmgate milk prices can be raised significantly.
At just 18,113 tonnes sold, volumes were their lowest offered and sold since 2011. But remember, Fonterra sells by far the most of its production through other, direct channels. The purpose of the auction is to just set a transparent price basis for all sales.
In the US, there is more evidence prices are rising. Today's CPI data shows that energy prices took a big jump in the month. However, food prices remain low, and the index without food and energy rose +2.1%, as markets expected. But now the low oil price has pretty much moved through the system we may start seeing 'good' headline price rises. The same will be true for New Zealand, but starting later in the year.
Today's American data has markets expecting the Fed to use this as a reason to raise its benchmark interest rate. In fact, two Fed governors say interest rate markets underestimate the chance of a June rate hike.
Stock markets may be coming to the same conclusion; they are down on Wall Street today in fear of the consequences. And that is despite good industrial production data from the Fed, and good capaciity utilisation data as well.
In Australia, HSBC has been forced to repay some of its clients. A review of its files found client investment goals in some files were closely aligned with the features of the products being advised upon. This case follows the rate-rigging cases and is compounding the calls for an official inquiry into bank behaviour and sales culture.
In New York the benchmark UST 10yr yield is unchanged today to 1.74%.
The oil price is marginally higher with the US benchmark now just over $48/barrel and the Brent benchmark just over US$49/barrel.
The gold price is also marginally higher at US$1,277/oz.
And finally today, the NZ dollar will start at 68.1 US¢, at 93 AU¢, and at 60.2 euro cents. The TWI-5 index is now at 71.7.
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 ».
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