Here are the key things you need to know before you leave work today.
TODAY’S MORTGAGE RATE CHANGES
There were no mortgage rate changes announced today.
TODAY’S DEPOSIT RATE CHANGES
Heartland Bank has cut its term deposit rates across the board by between 10bp and 35bp.
NZD INCHES UP AFTER HITTING ROCK BOTTOM AGAINST USD
The NZD is rebounding slightly, after hitting a 6-year low against the USD overnight. It’s inched up to 65.4 UC¢, from its low of 65.0 US¢.
The USD strengthened following positive service sector data out of the US overnight. Meanwhile the Kiwi weakened following a grim GlobalDairyTrade auction result that saw prices sink another -9.3% – the lowest ever on the GDT and settling at levels last seen in 2002-03. Employment and labour income data released yesterday was also weaker than expected.
The exchange rate may continue to show signs of volatility over the next couple of days, with Fonterra expected to reduce its $5.25 per KG of milksolids forecast milk price tomorrow, and the latest monthly US non-farm payroll report due out on Saturday morning.
AUST UNEMPLOYMENT UP
Unemployment in Australia increased more than expected in July. Data released by the Australian Bureau of Statistics shows the seasonally adjusted unemployment rate increased from 6.1% to 6.3% between June to July. The net increase in the number of unemployed was 40.1k, well ahead of market expectations of 10k. NSW recorded the lowest levels, coming in below average at 6%, while South Australia had the highest rate of unemployment at 7.9%. Westpac attributes this large leap to a surge in participation. Meanwhile, total employment rose 38.5k in July, well above market expectations of a 10k rise.
WHOLESALE RATES RISE
NZ swap rates continue to take their cue from offshore markets in the absence of any local data. The long end of the curve (5yr to 10yr) rose 6bps, while more modest 1 and 2 bps rises were recorded in the short end (1 & 2yr). The 90 day bank bill rate is still at a low 3.02%.
NZD STRENGTHENS AGAINST AUD
The NZ dollar is currently at 65.4 US¢. It’s strengthened by around 30bp against the Australian to 89.2 AU¢, following weaker than expected employment data. The NZD’s at 60.0 euro cents. The TWI is at 70.3. Check our real-time charts here.
DATA PARTNERSHIP BETWEEN GOVERNMENT & PRIVATE SECTORA data partnership is being established to champion the safe collection, use and sharing of government data. The Data Futures Partnership will be an independent group made up of members from the private, NGO, academic and public sectors and will be an extension of the NZ Data Futures Forum, which was set up to explore the risks, opportunities and benefits of sharing data. Statistics Minister Craig Foss said it provided an opportunity to enable agencies and entities to more effectively use and share their data.
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