Here's my summary of the key events overnight that affect New Zealand with news of interesting changes in how the Chinese are managing their currency.
But first, American industry rose strongly in October, with output up +1.3% and making up almost all output lost from prior month storm effects. Hurricane-related catch-up drove most of the growth, with cars and car parts playing a big part in the rise. There was a strong rise in Canada as well.
A new New York Fed analysis of the Chinese yuan concludes that it is behaving more like a managed float than its previous arbitrary settings. It is now much more responsive to economic and market signals, despite some occasional "assistance" from key SOE trading. However they note that the real test will come when there is downward pressure on the Yuan; will it then be allowed to follow market signals? And there are new internal calls for changes in the way exchange rate policies are managed.
In China, non-financial outbound investment slumped to US$86 bln in the ten months of 2017 to October, a drop of over -40% from a year earlier, as projects in some industries dried up. Most outbound investment that was approved was in leasing and business services, manufacturing, wholesale and retail sales and IT services. The Chinese government is making a big effort to halt "Irrational" outbound investment and that has been successful in halting net capital outflows. In calendar 2016 that outbound investment hit US$170 bln. However, for the first time in two years, Chinese foreign currency reserves had a positive gain in September, and in October that gain rose to +US$2.8 bln in the month.
And China is flirting with a new real estate property tax as a way to curb irrational property speculation.
A new analysis out in Canada suggests their employment growth is about to hit a snag. After rising growth for almost all of 2017, Canadian jobs growth is expected to turn negative in October.
In New York, the UST 10yr yield is at 2.36%, +2 bps higher than this time yesterday.
However, the price of crude oil is lower today, now just over US$55 / barrel, while the Brent benchmark is just under US$61.50
The price of gold is unchanged at US$1,277 oz.
The Kiwi dollar is little changed today as well. We are at under 68.6 US¢. And on the cross rates we are at 90.4 AU¢, and against the euro at 58.3 euro cents. That keeps the TWI-5 index at 71.7.
And the roller-coaster ride continues. Bitcoin has powered to a new all-time high, currently trading at US$7,706.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».