Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes today.
TERM DEPOSIT RATE CHANGES
No changes to report here either.
STILL ON HOLD
In Wellington today, RBNZ Governor Adrian Orr shocked no one with his decision to keep the OCR at 1.75%, but he is again leaving the door open for a cut, as well as a hike. No one is expecting any New Zealand change until 2019.
HOOKED ON A TAX DRUG
Australian homebuyers paid out over AU$21 bln in stamp duty to state governments during the 2017/18 financial year – and the total cost of the tax is expected to get even bigger over the next few years. The recent set of state Budgets envisage stamp duty revenues increasing by another +11% over the next four years. Data is from the Australian Housing Industry Association economist unit.
RURAL PAY ON THE MOVE UP
Pay in the rural sector is rising. A Fed Farmers survey of 940 employers across the dairy, sheep & beef, and arable sectors shows rises especially in skilled positions such as Assistant Herd Manager (+6.6%), Herd Manager (+5.5%) and Farm manager (+5.5%). There was also a more modest increase for the entry level farm assistant position (+2.8%). In the same period CPI inflation was +1.1%.
MORE VISITORS SPENDING MORE
The May data for tourism spending was released today by MBIE. Gains were strong. They highlighted UK and Chinese tourism spending which showed strong year-on-year growth in the three largest regions for tourism spend. UK spend was up +28% in Auckland, +25% in Canterbury and +28% in Otago, while Chinese spending was up +16% in Auckland, +19% in Canterbury and +14% in Otago.
NOT GROWING QUITE AS FAST
Growth in online retail is slowing, although in the year to May, it was up +10% year-on-year and broadly in line with what we have seen recently. But that is down from the +14% rate usual in 2017. Domestic online retail sales growth is +11%; international online sales growth is now +8% pa. Buying clothing from offshore sites is now lagging. Data according to BNZ/Marketview survey.
RISING TIDE RECOGNISED
Stats NZ has revised its calculation of household assets in the period 2008 to 2016, but resetting the value of residential houses over the period with updated data. That has added $184 bln to household assets taking them to $1.3 tln.
WEALTH EFFECT EVAPORATES IN OZ
In Australia, household net worth fell in the March quarter, the first fall in two years. The value of land & buildings fell by -AU$33.4 bln nationally (down -0.5%), and the value of financial assets fell by -AU$42.9 blb (-0.8%). In the past such reductions have been rare and fleeting, except during the GFC of course.
NERVES ON DISPLAY
Wall Street closed down almost -1% today, weakening faster at the close. Markets in our time zone are also weaker, except the ASX and NZX which are both showing small gains. Although Hong Kong is slipping slightly, larger losses are being posted in both Tokyo and Shanghai.
BENCHMARK INTEREST RATES DOWN SHARPLY
Local swap rates are sharply lower again today. The two year is down -2 bps, the five year is down -4 bps, and the 10 year is down -5 bps. The UST 10yr is now at 2.84%, down -4 bps. The Aussie Govt 10yr is at 2.63, down -1 bp, the China Govt 10yr is at 3.58% (down -3 bps), and the NZ Govt 10 yr is at 2.88%, down -4 bps. The 90 day bank bill rate is down -2 bps and now at 2.00%.
BITCOIN DOWN
The bitcoin price is now at US$6,101 which +1% higher than at this time yesterday.
NZD LOWER
The NZD is still falling and now at 67.8 USc. On the cross rate we are lower too at 92.2 AUc and 58.6 euro cents. That has dragged the TWI-5 down to 71.3.
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