A review of things you need to know before you go home on Wednesday; more TD rate cuts, jobless rate rises, house values move sideways, SMP prices rise, swaps and NZD little changed

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

MORTGAGE RATE CHANGES
No changes to report.

TERM DEPOSIT RATE CHANGES
FE Investments reduced all their TD rates by -10 to -40 bps.

CHANGING DIRECTION
Unemployment has turned up, for the first time since 2016. The rise is small however, but overall wage inflation has seen a sizable boost, possibly due to the start of rises in the minimum wage.

BACK TO NORMAL?
QV's national average housing valuation dropped for third month in a row in July. They say average residential property values moved sideways over winter as the market hunkers down, with Auckland experiencing a return to 'normal' market conditions.

EXPANSION SLOWS
Australia's factory PMI expanded at a noticeably slower rate in July, pointing to a manufacturing slowdown across the ditch. Interestingly, China's PMI is exhibiting the same growth slowdown.

MORE WOES FOR THE NZX
The NZX50 today built on its losing trend, down -0.8% today alone. It is down -1.5% so far this week, and threatening to end its long-term upward trend. These are trends not reflected in offshore markets. Falling business confidence isn't helping; neither is a growing leakage to the ASX.

LESS DOWNWARD PRESSURE
On the dairy derivatives market, WMP prices are suggesting little movement, but SMP prices seem to be taking a good shift higher, up +5%.

NEW DIRECTOR FOR CO-OP MONEY
Credit union industry association Co-op Money NZ has appointed Richard Westlake as an independent director for three years. Westlake, who has been advising the board for the past year, has also been appointed to the board of Co-op Services NZ. Westlake has 25 years of corporate governance experience and runs Wellington-based Westlake Governance Ltd. He was previously an independent director of Kiwibank.

SWAP RATES STABLE
Local swap rates are little changed today. The UST 10yr is up by +1 bp from yesterday and now at 2.98%. The Aussie Govt 10yr is at 2.71 and up +1 bp today, the China Govt 10yr is at 3.52% down -3 bps, while the NZ Govt 10 yr is at 2.82%, up +1 bp. The 90 day bank bill rate is unchanged at 1.91%.

BITCOIN DROPS
The bitcoin price is now at US$7,548, down a very chunky -7% from this time yesterday.

NZD SOFT
The NZD is a little lower at 68 USc. We are also soft on the cross rates at 91.7 AUc, and the euro at 58.2 euro cents. That puts the TWI-5 down a little at 71.5.

This chart is animated here. For previous users, the animation process has been updated and works better now.

Daily exchange rates

Select chart tabs »
The 'US$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'AU$' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'TWI' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥en' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '¥uan' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The '€uro' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'GBP' chart will be drawn here.
Loading...
Daily benchmark rate
Source: RBNZ
The 'Bitcoin' chart will be drawn here.
Loading...
USD 
NZD
End of day UTC
Source: CoinDesk

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.

19 Comments

If the NZX50 is falling, things are worse than they might appear because that "innovative" index includes the compounding effect of dividends.

Oh good news, just a 'sideways drop' in QV's figures... is that similar to a 'lateral rise' ? I'm confused.

It's a southern hemisphere thing.. you fellas from North of the equator just don't understand.

Export log prices are heading south along with the RMB.

The Bezos could have brought an Auckland house instead of investing 245K in their sons company..https://www.nasdaq.com/markets/ipos/filing.ashx?filingid=1249014

Haha. That comment made my evening!

Cowpat that's the best comment of the year.

Jock this may be before your time.. or perhaps not

https://www.youtube.com/watch?v=i94HHGKml9M

Major banks lead losses on ASX as house prices tumble
https://www.smh.com.au/business/major-banks-lead-losses-on-asx-as-house-...
The S&P/ASX 200 index closed 4.5 points or 0.1 per cent lower, at 6275.7 after CoreLogic data revealed that house prices had experienced their biggest annual fall since 2012.

Morons like nzdan would need to understand the reason for this outcome

Haha. All I need to understand is why you didn’t buy a house 7 years ago.

That's my personal problem not yours..

I haven't asked you why you're such an idiot

First Teachers' strike in 24 years. First of a long list to cash in before the cupboard's bare...they had been muttering about 16% but that's an opening gambit.

Then we have Tertiary (where relativity with Teachers is always closely watched), Police, MPI, Defence, and a buncha others who have been going out without anybody actually noticing. l reckon it will take a couple of years and lotsa hundreds of millions to get the relativities re-established in even a fragile way. Expectations are sky-high and there's more than a whiff of FOMO in the IR air.....

THE END OF THE GLOBAL HOUSING BOOM... BLOOMBERG.

https://www.bloomberg.com/news/articles/2018-07-31/are-house-prices-fall...

They’re probably just being doom and gloom merchants. New Zealand is different. We’re number 1.

Diffrunt.. get it right fam.

It was worth my wait..

Irrespective of what fools like nzdan think

Poe's law is an adage of Internet culture stating that, without a clear indicator of the author's intent, it is impossible to create a parody of extreme views so obviously exaggerated that it cannot be mistaken by some readers for a sincere expression of the parodied views.