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A review of things you need to know before you go home on Wednesday; No rate changes as RBNZ awaited, inflation stirs, more apprenticeship funding, RMA reform inches forward, gold jumps, swaps slump, NZD volatile

A review of things you need to know before you go home on Wednesday; No rate changes as RBNZ awaited, inflation stirs, more apprenticeship funding, RMA reform inches forward, gold jumps, swaps slump, NZD volatile

Here are the key things you need to know before you leave work today.

MORTGAGE RATE CHANGES
No rate changes today.

DEPOSIT RATE CHANGES
No changes here either.

STARTING TO STIR
ANZ's unofficial monthly inflation monitoring shows a small monthly rise, but the year on year result up +2.3% (that is, the index up from 1162 to 1191). It is being pushed up by non-tradable components.

IN-WORK TRAINING BOOST
An extra $10 mln has been allocated for "in work training" (ie apprenticeships) bringing the total to $183 mln. There are currently 42,000 people in these programs, and the official goal is to get that total up to 50,000 by 2020.

FORWARD, BUT SLOWER
An agreement on policy issues in the Resource Legislation Amendment Bill has been reached between National and the Māori Party, which will enable the Bill to pass its second and third readings. However, this also means the Governments plan to have all this sorted in 2016 won't happen now.

GOLD GETS BOOST
Asian trading shows gold is up strongly, up +3% to US$1,313.

WHOLESALE RATES VOLATILE
Update: There has been a sudden, late change in swap yields. They have fallen sharply just after 4pm following the rise of Trump in the US vote. The following is the original comment based on pre 4pm situation: (Yields are still rising in wholesale debt markets. The curve steepened again today strongly. Two year swaps are up +2 bps, five years are up +5 bps, and ten years are up +7 bps to 3.03%. This may all change quickly however as the UST 10yr yield is dropping sharply after hitting 1.89% - it has retreated in the past few minutes to 1.78%. The 90-day bank bill is down -2 bps to 2.11%.)

NZ DOLLAR FIRM & VOLATILE
The US election is also making currency markets choppy as the results ebb and flow. The Kiwi dollar is now at 73.7 USc which is higher than this time yesterday. On the cross rates, it is trading at 96 AUc, and is at 66.1 euro cents. The TWI-5 is at 77.2. Check our real-time charts here.

You can now see an animation of this chart. Click on it, or click here.

Daily exchange rates

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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

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1 Comments

Swap rates plummet tonight - so looks like Trump win = lower interest rates for longer?

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